Investors prefer buying gold at current price

Investors prefer buying gold at current price
PTI
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First Published: Tue, Jun 09 2009. 11 55 AM IST
Updated: Tue, Jun 09 2009. 11 55 AM IST
New Delhi: According to a survey conducted by brokerage firm India Infoline Ltd (IIFL), about 74% of investors in India, the world’s largest gold consumer, said that they prefer purchasing gold and related products at current price levels.
Currently, gold prices are hovering between Rs14,700 per ten gram and Rs15,100 per ten gram.
Among those who were willing to buy gold at current prices, the preference for purchasing jewellery was higher as compared to any other form of gold, the survey said.
About 35% of investors showed interest to buy jewellery, 27% in gold Exchange Traded Funds (ETFs) and 12% in coins and bars, it said.
Interestingly, around 60% of the respondents indicated that their purchase of gold bars and coins was for future conversion into jewellery, it added.
Even at the current relatively-high gold prices, interest in gold remains strong and the outlook for gold price is generally positive, said IIFL, which surveyed 167 cities in 23 states.
The survey also highlighted the price trend for next six months. It said that 44% of investors foresee gold prices in the next six months to be higher, whereas 24% of them said rates may come down.
However in the last 12 months, 43% of the investors bought more gold. This signifies that although rising gold prices have deterred some buyers, it equally prompted others to add more gold to their personal wealth, IIFL said.
The survey also noted that 95% of the investors purchase gold from local and branded jewellers, who market investment-grade 22-24 carat gold.
India has been the largest consumer of gold jewellery and the survey indicates that it will remain so in future as well, it added.
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First Published: Tue, Jun 09 2009. 11 55 AM IST