Gold retail sales touches 50 tonne in October: GJF

Written by Commodities Bureau | Mumbai, Oct 24 | Updated: Oct 25 2008, 07:34am hrs
The All India Gems and Jewellery Trade Federation (GJF) has announced a growth of 66% in sales of gold for the period from October 1 - October 20 as compared to the same period last year. Sales reached 50 tonne during the period, aided by sales promotions organised by retailers across 217 cities. The figures quoted by GJF are based on a study of all outlets participating in the Lucky Lakshmi festival.

The Lucky Lakshmi festival, which is the worlds largest jewellery festival, has been instrumental in the growth of gold sales this year. The festval has a reach across 217 cities in India with over 1,400 retail-participants. With Dhanteras around the corner, consumers have been flocking jewellery outlets. This increase in demand can be attributed to the consumers belief in gold being the only safe investment in the current global market turmoil, said Ashok Minawala, chairman, GJF. The federation is a national trade body with the objective of promoting the growth of trade in gems and jewellery across India.

The current price of gold, at its lowest in the last twelve months, has become an additional attraction for the Indian consumer and has intensified the demand for the yello metal at the most auspicious time of the year. The correction in gold prices has further intensified the demand for gold this Dhanteras, giving consumers a greater opportunity to splurge on gold, Ajay Mitra, managing director, World Gold Council, Indian subcontinent.

Commenting on the scenario, Dinesh Jain, chairman, promotion and development, GJF, said, Traditionally, gold has been one of the safest investments during times of financial turmoil and provides a glittering refuge. It is a time- honoured investment, especially in India. Keeping this in mind, it is the best time to invest in gold as it touched $699 per troy ounce on October 23, the lowest level in the last 18 months and will see an increase in value and price very soon.