Indians made jewellery purchases worth $7.2 billion in the quarter ended September 2012, belying claims of a slowdown in the market.
by Shivom Seth:
MUMBAI (MINEWEB) -
"India's penchant for gold jewellery does not seem to be fading away any time soon, despite the fact that the Indian government seems intent on curbing sales of the precious metal.
"Despite constantly rising prices, the consumption of the yellow metal has been steady. With the wedding season in full swing in India, there is no slump in the sales of gold.
"With the rate of pure gold shooting up to $608.97 (Rs 33,300) per 10 gram for 22 karat gold, one would have rightly presumed that gold jewellery is well out of the reach of a majority of people.
"Not so. In the quarter ended September 2012, Indians made jewellery purchases worth $7.2 billion (Rs 395 billion). In contrast, gold exchange traded funds (ETFs) garnered just $91 million (Rs 5 billion) of inflows.
"The wedding season, which extends well into the new year, is expected to ensure even better sales for gold retailers. ..."