Gold News

More people Buying Gold as Indian festivals approach

Demand for gold in India is still expected to be high despite a poor monsoon and high prices.

During last year's festival season, Gold Buying was negatively impacted by the global financial crisis.

However, a survey of five of the country's seven biggest gold retailers at the India International Jewellery Show suggests this year will be different, Reuters reports.

While last year sales were depressed, this year the merchants expect significant market growth, with this being seen as an indication of strong demand for gold throughout the autumn.

"The response from the fair is quietly encouraging despite the existing situation," Suvro Chandra, director at PC Chandra Jewellers from Kolkata, told the news provider.

"We have received fairly good response from south India. We would be happy if we grow slightly (in 2009) as festivals and marriages are coming up."

In the UK, the Royal Mint has doubled production of gold coins in response to the decision of investors to diversify their portfolios through Buying Gold.

Commenting on the trend, Stephen Briggs, an analyst at RBS Global Banking and Markets in London, told Bloomberg: "There's still interest in gold as a safe-haven asset.

"This whole sector will capture people who don't have access to the futures market."

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