Gold News

India Gold Buying "Robust" at Diwali

GOLD BUYING by Indian consumers during last week's Dhanteras and Diwali festivals has been "remarkably robust" given record-high prices, according to a senior analysts.

One analyst pegs last week's clamor to Buy Gold amongst Indian households – whose observance of the Hindu 'festival of lights' marks the climax of post-harvest celebrations – at one fifth or perhaps one quarter greater than during Diwali 2009.

"High prices are not stopping people from Buying Gold," says Hitesh Zaveri, owner of Vallabhdas Jewellery in Zaveri Bazaar in Mumbai, speaking to the Financial Times.

"On birthdays a cake is compulsory. On Diwali gold is compulsory. No cake, no birthday and no gold, no Diwali. Simple."

A senior Mumbai bank dealer told the FT that demand for Buying Gold had been "remarkably robust for where the price is."

Following statements of surprise at India's strong gold buying from international bullion dealers including UBS, "It has been a good year for sales in the retail market in India," agrees Tom Kendall at Credit Suisse.

Standard Bank's London team predict that while the end of Diwali "will see a slowing in physical gold demand, [jewelry] stockists are optimistic that purchases will be healthy as the wedding season continues through to December."

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