India's investment demand for gold reported up 80 percent
Rising crude price, inflation
make gold investors' favourite
New Indian Express, Chennai
Sunday, October 9, 2005http://www.newindpress.com/NewsItems.asp?
HYDERABAD -- The yellow metal is becoming the hot favourite with
investors for parking their funds.
According to World Gold Council managing director (India
subcontinent) Sanjeev Agarwal, with crude price going up causing
inflation, there is a tendency for the investor to find gold as the
safest investment instrument.
"There is an 80 percent growth in investment in gold," he said.
Replying to a question at a news conference here, he said that this
was one of the reasons for the demand far surpassing supply of
gold. "For the whole of last year, sale of gold was 648 tonnes in
India and this year the sale has reached an unbelievable 508- tonne
mark till June and the prospects are that by year end it would be
double last year's sale," he predicted.
Agarwal who was in the city in connection with the forthcoming AP
Gold Festival (Oct. 10 to Nov. 30), said that as the supply of gold
has remained limited the price went beyond Rs.6,800 per 10 gram.
In spite of that, there is a brisk sale of gold. There is a 50
percent growth this year in jewellery, he said, but admitted that if
the price continued to go up, the investors might redeem it for
cash. He, however, could not hazard a guess how long the gold rally
would continue. "If I had known, I would not be sitting here," he
Bollywood actress and brand ambassador for the AP Gold Festival
Vasundhara Das unveiled five bars of gold each weighing one kg,
which would be distributed as, prizes to those who purchase gold
during the festival. As many as 227 lucky draw winners will bag
prizes including one kg gold bumper prize.