Mumbai: Return per cent in the last one year as the precious metal became a ‘preferred choice’ option for a large number of investors in the country.
“Since disposable incomes of average Indians have gone up significantly, gold has become a preferred choice of investment for a large number of investors,” Assocham president Venugopal Dhoot, said.
Gold imports would grow by 250 tonnes by 2008, he said. Speaking at an Associated Chambers of Commerce and Industry of India (Assocham) function, Dhoot called for much-needed investments into the country to fully exploit its mineral resources while making India a vibrant trading hub for the gold and diamond businesses.
Since the economic slowdown in America is unlikely to be arrested in the immediate future, its impact will be harsh on dollar which would continue to weaken while rupee would get stronger, he added.
This could inspire gold investors, particularly in a country like India to invest more in gold for security reasons, Assocham said in an assessment on possible gold prices during Diwali and subsequently in the marriage seasons.