Indian festival consumers rush to Buy Gold

The head of a leading Indian jewellery group has claimed that Gold Investment demand in the country is soaring, Business Week reports.

Dhanteras, the auspicious first day of the Diwali festival, arrived yesterday (October 15th), with consumers reportedly loosening the purse strings in their droves.

The business community is particularly enamoured with the occasion, as purchasing precious metals is believed to be a sign of luck as it invokes Laxmi, the god of abundance.

Now Mehul Choksi, group chairman of Gitanjali, has explained that there was a noticeable surge of Gold Buying, even though prices are 25 to 30 percent higher than at the same time last year.

"There was a huge rush for gold-linked investment, particularly gold coins, on Dhanteras and despite the surge in prices, the overall buying mood was bullish," he told the news provider.

Last week, David Beahm, vice-president of economic research at precious metals investment firm Blanchard and Co, outlined his belief that gold prices will rise further.

Although the yellow metal has reached all-time highs this month, he noted that the dollar - which tends to move in the opposite direction - is widely expected to continue its struggles in the future.

"The only way this doesn't continue would be a stronger dollar," he said in an interview with the Associated Press.

"I can't find anybody out there that is saying that is going to happen."

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