Friday, January 14, 2011

Indian Gold Demand Still High Despite Rising Prices

According to a Bloomberg article, demand by Indians hasn't tailed off because the rising price has met higher incomes.
“Basic disposable incomes are increasing because of which there is good demand and people are smartly investing in gold,” Chairman Rajesh Mehta said today in an interview from Bangalore.

Indian gold imports likely reached a record in 2010, driven by investment demand, Ajay Mitra, managing director for India and the Middle East at the World Gold Council, said Jan. 12 in an interview....

“In spite of higher prices we are seeing good demand for jewelry in India,” Mehta said. “The trust in gold is enforcing itself.”

Actually, the price is beginning to bite a little. More and more Indians are becoming interested in silver, falling into step with others who are taking a look at gold's poor cousin too.

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