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Thursday, 18th December 2008 (1821 views)

Indian jewellers are defying the current economic downturn and are reporting higher sales of gold jewellery, a report claims.

According to the Retailers Association of India, many people are turning to gold as a stable form of investment, Livemint.com reports.

The organisation predicts that all retailers will register around 15 per cent growth in sales this year, while the jewellery sector will generate an increase in sales of 25-40 per cent.

Irfan Munshi, head of Damasy Retail Jewellery in India, claims: "Gold has sustained its growth in all the turmoil around. So, people are safely removing their investments from stocks etc and investing them in gold and jewellery."

A sharp fall in stocks has prompted many Indian consumers to invest in jewellery and Mandar Pote, research analyst for Angel Broking, tells the website that "investors invest in gold as a safe option", pushing gold consumption up to 769 tonnes in India for the 2007-08 fiscal year.

The Economic Times of India suggests that "Indian families will trim their budgets on almost everything around a wedding, except jewellery", as gold sales remain high during the country's traditional wedding season.

 

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