It may not be all glitter for diamond- and gem-studded jewellery vendors, but the last leg of 2008 has brought a shine to the bullion, bars and pure-gold jewellery with domestic demand for investment in gold growing by as much as 15% in the last two months, according to data compliled by the World Gold Council (WGC).
?With other investment avenues like stocks, mutual funds (MFs) and banks falling, some by even 70% in a year, investment in gold has climbed the demand graph by 14-15% in October and November,? WGC vice-president Shivaram told FE. The total tonnage of demand is said to be 18% higher than that recorded in the previous year. Coincidentially, this is roughly proportionate to the 15% appreciation that investment gold currently offers year-on-year. ?The lion?s share of demand came from investment in gold,? Shivaram said. Levels of demand touched $10.7 billion, double the previous year?s levels.
Meanwhile, specialisation in diamond- and gem-studded jewellery and pure-gold jewellery has created a clear divide between north and south Indian gold markets. ?For example, while gem and diamond export units in north India are integrated to US and European markets which are most hit by the economic meltdown, in south India there is a ?buy or invest in gold? wave,? said Chennai-based jeweller Princeson Jose.