Gitanjali Gems: Investment in gold set to rise like phoenix

MUMBAI, India - July 17, 2013 - PRLog -- We Indians have been drawn towards jewellery since time immemorial—either as an ornament or in the form of investment. Our profound interest in jewellery is based on our culture, tradition and also the economic realities at the domestic and global level. As an investment option, jewellery, especially gold jewellery, has been an easier bet to hedge against inflation and other risks. An alluring collection of precious metals like gold and diamond is a safer investment option than cash, stocks and even real estate.

Over the last few years, the global economy has been in a state of turmoil, and this has adversely affected many countries across the globe. The so-called sound and safe investment options are now being looked upon with renewed uncertainty. The stagnating economic conditions have caused many to suffer major financial losses.

However, investment in jewellery has been and will always be a safe investment option. Irrespective of the state of the domestic or global economy, the yellow metal will thrive. This is particularly true in India, where people consider gold an auspicious metal. This is why one finds Indians, both men and women, adorning gold ornaments during prayer meets, weddings, etc.

The perception about jewellery is undergoing a major change. With the evolution of retail brands that cater to diverse consumer preferences and segments, the gems and jewellery industry in India has been converging with the western countries in branded luxury jewellery retail. The investment mind-block associated with commodities such as gold, silver and diamond in particular is paving the way for unique relationship values attached with jewellery. Clearly, branded jewellery is not being purchased to re-sell, but to maintain it for life, wear it and embrace it.

Gitanjali Group, one of the leading players among jewellery and diamond houses, has played a stellar role in promoting jewellery as an investment option. Gitanjali Gems (http://www.gitanjaligemsshares.com/) also has the distinction of bringing diamonds within the reach of an average middle class buyer. Gitanjali Gems is also the first company that offered diamond jewellery at affordable prices. Gitanjali Group operates across the world, from the US, UK, Italy, Belgium and the Middle East to Thailand, South East Asia, China and Japan.

This development of Gitanjali Gems (http://www.gitanjaligemsltd.com) has not taken shape via any automatic route. Gitanjali Gems have been instrumental in bringing out the revival in jewellery market in India. From the theory of “Diamonds are Rare,” Gitanjali Gems has come a long way in identifying jewellery as “For the woman of spirit” and “Celebrate Always,” indicating that wearing diamond jewellery has become a daily affair rather than being confined to occasions such as wedding or festivals. When you talk of a Nakshatra piece, you know that Gitanjali Gems is not just selling jewellery, but an aspiration to convert it to a prized possession. With changing needs and timing of jewellery purchase, the investment angle has taken a backseat to making jewellery a symbol of self-esteem, emotional security, independence and social status. Gitanjali Gems (http://www.gitanjaligemsshares.com) has successfully launched multiple brands for multiple markets and price segments.

From the macroeconomic perspective, the downgrade in the US economy and Eurozone crisis has had a negative impact on the Indian currency. Rupee stands depreciated at about 12% over the last few months due to high current account deficit. While crude price volatility and imports are the most obvious reasons for this gap, high gold import has played the spoilsport; ranking third after crude oil and capital goods in the import basket. Undoubtedly, India’s traditional fixation with gold is implicitly playing culprit for the Balance of Payment situation on one hand but also passing a positive message on the other: Indians still pay a premium for jewellery.