In India, Investors Sell Gold, Buy Stocks

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In a nation that buys a third of the world's gold output, even bullion dealers are selling the stuff in hopes of a seventh year of stock market gains, a trend that could cause gold's record run to above $900 an ounce this year to stumble.

As global investors dump stocks in a flight to safety that has whipped gold prices to a series of record highs, Indians are doing just the opposite.

In a nation that buys a third of the world's gold output, even bullion dealers are selling the stuff in hopes of a seventh year of stock market gains, a trend that could cause gold's record run to above $900 an ounce this year to stumble.

Far removed from gloomy global peers who are bracing for a U.S. recession, Indians increasingly see limited upside for gold after last year's rise of more than 30 percent, and are ready to shift more of their savings from jewellery toward a stock market that notched up over 40 percent gains for three years running.

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