Wednesday, March 30, 2011

Gold Buying In India Forecasted To Increase This Year

Contradicting a recent Morgan Stanley analysis forecasting a drop in Indian gold demand for this year, the Economic Times has webbed a report predicting gold buying will rise 15%.
Jewellers say buyers have been investing more in the yellow metal to cash in on the uptrend in prices. "Price rise has not stopped people from buying gold jewellery for the wedding season. We are expecting a 10-15% growth in gold jewellery buying this season," Bachhraj Bamalwa, founder partner of Nemichand Bamalwa, said.
There is some price sensitivity, though. Some people, particularly middle-class consumers, are looking for light jewelry with a heavy look. But, tradition still trumps price sensitivity when it comes to weddings; heavy jewelry is still preferred for those occasions. The wedding season is geared to start up in the second week of April; what's been underway are preparations for it.

Some jewelers note that price sensitivity is blunted by the fact that gold keeps going up. In some cases, the metal's bull run is fuelling buy-now demand.

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