Gold demand in India, the biggest user, may surge 25 percent during the festival season this year as buyers expect prices to extend a record rally on haven demand, according to Rajesh Exports Ltd. (RJEX)
Purchases of gold jewelry, coins, bars and medallions may climb to 250 metric tons in the three months ending Nov. 30, compared with an estimated 200 tons in the same period a year earlier, said Rajesh Mehta, chairman of Rajesh Exports, India’s biggest jewelry maker.
Rising Indian demand may help extend a 26 percent rally in prices this year that’s made the precious metal the second-best performer on the Thomson Reuters/Jefferies CRB Index of 19 raw materials. Imports may reach a record 1,000 tons this year as investors seek a haven against inflation and volatility in stock markets, Prithviraj Kothari, president of the Bombay Bullion Association, said Aug. 20.
“In spite of the high prices, we have seen quite good demand,” Mehta said in a phone interview yesterday. “When people are buying jewelry, their motive is investment.”
Buying gold is considered auspicious during the religious festivals in India. The festival season this year starts with Eid this month and ends in October with Diwali, which is followed by the traditional wedding season......read on