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Premier-eFinance: India’s festival season may see gold sales increase by 25% according to jeweler.
Gold demand in India, the world’s largest user, may jump by 25% during the country’s festival season, as buyers expect gold prices to continue bull-run on “safe haven” demand.
Purchases of gold jewelry, coins, bars and medallions could soar to 250 metric tons in the three months ending Nov. 30, compared with an estimated 200 tons in the same period a year earlier, Rajesh Mehta, chairman of Rajesh Exports, India’s biggest jewelry maker said.
Rising Indian demand may help extend a 26% rally in prices this year that’s made the precious metal the second-best performer on the Thomson Reuters/Jefferies CRB Index of 19 raw materials. Imports could touch a record 1,000 tons this year as investors seek a haven against inflation and volatility in stock markets according to Prithviraj Kothari, president of the Bombay Bullion Association.
“In spite of the high prices, we have seen quite good demand,” Mehta informed Premier-eFinance sources in a recent telephone interview. “When people are buying jewelry, their motive is investment.”
Buying gold is considered auspicious during the religious festivals in India. The festival season this year begins with Eid in late August and ends in October with Diwali, which is followed by the traditional wedding season.
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