Good Gold sales in India in Diwali week

Commodity Online
Gold may be going up and down globally. But the yellow metal regained its lustre this Diwali in India as jewellers said there was brisk business in gold during the festive season. "Many consumers who were keen to encash on the dip in gold prices have turned to investing in the commodity," said Sivan Soman, a gold dealer in Mumbai.

He said gold sales have been good despite the stock market plunge during the Diwali days this week.

Bangalore Jewellers Association said that retail sales in the last four to five days has been better than last year.

In terms of dollar, gold has dipped from $980 a ounce to $682 in the last 30 days. However, due to depreciation of rupee, the net benefit has been impacted. In rupee terms, it has slipped from Rs 1,399 a gm to Rs 1,140 in the last one month.

With gold prices reaching an 18-month-low, the current global economic crisis and stock markets not doing too well, many consumers have begun to take their money pumped in stocks and equity and invested it in gold.

Traders said gold is being perceived as a secure investment in a market facing the brunt of global financial markets turmoil.