Rise in people buying gold as Diwali festival approaches
The Economic Times reports today (October 23rd) that India is witnessing a surge of people buying gold ahead of next Tuesday's Diwali festival.
The auspicious 'Pusha Nakshtra', which takes place on several days a year but is considered most important in advance of the festival, saw sales rising in cities such as Indore and Udaipur.
Narenda Singhvi, president of the Sarafa Association of Udaipur, told the news provider that the demand to buy gold jewellery has increased markedly from last year.
He said: "With share markets and property markets crashing people are buying more gold."
Gold prices touched $909 per ounce in the first week of October but have since fallen by 17 per cent to $753, which is seeing many buyers returning at the lower level.
With the future of the global landscape still in the balance despite coordinated efforts to combat its effects, the price may appeal to people looking to establish a longer-term gold investment.
As Lin Yuhui, research manager at China International Futures, explains: "Inflation is still an issue, although people don't really talk about it these days as there are other things like the credit crisis to focus on."
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