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High prices not affected demand for gold

High prices not affected demand for gold
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First Published: Sun, Apr 20 2008. 12 19 PM IST
Updated: Sun, Apr 20 2008. 12 19 PM IST
By PTI
Chennai: The rising inflation has hit the market hard and the gold price is spiralling to a level beyond expectation, but nothing seems to stop the gold-lust consumers from buying and investing in gold.
Industry experts say that the high prices had not affected sales of gold jewellery. The consumer demand had infact increased to 773.6 tonne from 721.9 tonne compared to last year.
World Gold Council Vice-President K Shivram said the gold had outperfomed all other asset classes in recent times and it had given a 30-35% return on investment in the last year. “We can safely say gold is an investment for the consumers in the market. ”
“There has been a renewed interest in Gold ETFs, though they are in their early days of consolidation in Indian markets,” he said adding the matured class of investors, who had been already into equity markets, were investing in Gold ETFs and had made better returns in gold than equity in these troubled times.
In the recent times when Indian equity market went into a tizzy hurtling down, there had been a flight of funds from equity to gold, he said.
The scenario, with dollar struggling to hold on against other currencies, high crude oil prices, global equity meltdown in the wake of recessionary fear in the US and static gold mine production, indicated a further rise in prices of gold in the coming days, he said.
G R Radhakrishnan, managing director of GRT Jewellers here, said high prices had not affected the sales and infact the trend was very positive for designer jewells.
He said to tap the growing consumer demand across the country, the firm had planned to open more showrooms in the country in the next five years.
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First Published: Sun, Apr 20 2008. 12 19 PM IST
More Topics: Gold | Jewellery | Price | Money Matters | Commodities |