Pre-Festival Gold Price Dip a Boon for India's Jewelers
Source: Mineweb, Shivom Seth (5/3/11)
"The small respite in prices was reason enough for Indian consumers to lap up the yellow metal."
It was short-lived. The price of gold had burst through $1,575.95 early on May 2, before shedding some of its gains in the international market. The drop triggered a frenzy of buying in India.
As news of Osama bin Laden's death spread across the world, the price of precious metals dropped. The small respite in prices, however, was reason enough for Indian consumers to lap up the yellow metal.
As a run-up to and ahead of a key gold-buying festival Akshaya Tritiya, Indian consumers have been waiting to book their pot of gold. And bin Laden's death provided one such golden opportunity that was not to be missed.
The world's largest consumer of the precious metal is set to celebrate Akshaya Tritiya on May 6, this year. Buying small pieces of gold or silver for Akshay Tritiya is believed to bring in success and wealth.
"The word 'Akshaya' means imperishable or eternal—that which never diminishes. Initiations made or valuables bought on this day are considered to bring success and good fortune. Buying gold is a popular activity during the day and even small silver icons now denote the ultimate symbol of wealth and prosperity for many households,'' said Mohandas Zaveri, a bullion retailer in Mumbai.
"On Monday, investors were betting on growing demand for the yellow metal which includes a jump in prices in the near term,'' said investment analyst Omkar Agnihotri, who works in a foreign brokerage firm in Mumbai.
Several bullion traders rushed in to place deals when prices dipped. Their aim was to stock up for the forthcoming gold-buying festival, when demand for gold shoots up, never mind other escalating factors.