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Tuesday, 30th August 2005 (4256 views)

Good crops in rural India will contribute towards high gold demand from the country again this year.<br/><br/>In 2004, Indians bought 643 tonnes of gold, a rise of 17.6 per cent on last year's figures and a move that maintains India's position as the world's largest gold consumer.<br/><br/>Sanjeev Agarwall, managing director for the Indian subcontinent at the World Gold Council told Reuters that: "Barring any major volatility and dramatic changes in gold prices, the signals are that the demand for gold is going to remain strong this year."<br/><br/>Monsoon rains have produced good results for India's farming population that comprises much of its gold-buying contingent.<br/><br/>Gold continues to be popular in rural areas especially in the run up to the wedding and festival season as it forms an integral part of ceremonies fuelled by traditional beliefs.<br/><br/>Gold is also increasingly being used for investment purposes in India with the rise of services such as e-gold; similarly the latest development of the Gold Survey in Hindi can only increase the information available to investing Indians.<br/><br/>Gold itself has seen an increase in overall demand which rose by 26 per cent in tonnage in the first quarter year-on-year.<br/><br/>

 

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