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Thursday, 22nd April 2004 (4903 views)

Indian jewellers are optimistic about future gold demand reporting new trends and events set to affect the need for the precious metal.<BR/><BR/>Gold prices have dropped again by around R500 in the last month to more attractive levels for Indian consumers and the country is to receive its first gold souk this October.<BR/><BR/>Demand is also set to receive a boost at the end of the month as part of traditional Indian wedding ceremonies on April 29.<BR/><BR/>Dinesh Kataria, sales manager of leading retailers Bhola Sons Jewellers told IANS: "Though Indian consumers are known to be price sensitive, there has been some change in buying habits in the last couple of years. Now consumers mostly do not buy gold as an investment or hoarding for the marriages of their daughters but for normal or festive wear."<BR/><BR/>Recent bullion price drops are attributed to the US economy improving and the dollar hardening leading to an effect on dollar linked gold prices.<BR/><BR/>Ms Kataria predicted a pick up in gold jewellery sales in designer and diamond items in particular as they fitted well into new trends.<BR/><BR/>India is the largest importer and consumer of gold and consumes approximately 800 tonnes each year.

 

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