Gold sales pick up phenomenally in India

Submitted by cpowell on 08:45AM ET Sunday, October 26, 2008. Section: Daily Dispatches

Gold Sales Shoot Up Phenomenally in This Festive Season

Gold Prices Had Plunged to Rs11,500-level per 10 Grams Last Week before Closing at Rs12,210 per 10 Grams Yesterday

From Press Trust of India
via LiveMint.com (Hindustan Times)
Sunday, october 26, 2008

http://www.livemint.com/2008/10/2617...

NEW DELHI -- Gold sales have picked up phenomenally after a fall in its prices to 12,000-rupees level following consistent steep fall in equity markets which has boosted the demand for the metal as a safe investment option.

As per the All-India Gems and Jewellery Trade Federation study, about 50 tonnes of the metal has been consumed during 1-20 October against over 80 tonnes sold in whole of October-December quarter last year.

"Gold prices are correcting in the last few days and business is booming since last 2-3 days. This trend is likely to continue till the end of this year," World Gold Council Director Dharmesh Sodah said.

Gold prices had plunged to Rs11,500-level per 10 grams last week before closing at Rs12,210 per 10 grams yesterday.

All-India Gems and Jewellery Association Chairman Ashok Minawala said that the sales during this festive season have been "sporadic" and overall it is 15-20 percent higher than last year.

"Low prices of gold and the festive period of Diwali have become double opportunity for the consumers across the country to buy gold," Minawala said.

"Consumers are positive toward gold and this trend is likely to continue during November and December, when sales may go up by 50 percent compared to last year," Minawala added.

Retailers also confirmed strong consumer demand for gold during this festive season and said the growth has taken place place in spurts.

Delhi-based Om Sons Jewellers' Suresh Verma said: "Gold sales may rise further during Dhanteras, a festival which is considered auspious to buy precious metals."

"This positive trend is likely to continue even after Diwali, which is immediately followed by the marriage season that goes up till the first two months of next year," another trader said.