Wednesday, 18th February 2004 (4826 views)

Rising prices in the gold industry have not dented the appetite for gold jewellery in India, according to traders.

With prices proving unpredictable, as gold touched a 15-year high last month, some analysts had speculated on a gloomy period for the nation's jewellers.

However, consumers have remained loyal to the precious metals, with the jewellery industry enjoying strong profits in recent weeks.

Experts such as Nilkanth G. Pethe, a Bombay-based jeweller, say that even though the high price is delaying some purchases, the wedding season has been as popular ever.

Traders said retail demand for the marriage season - which begins in December and ends in May - had boosted the gold industry, with Hindu parents traditionally offering gold jewellery to brides.

'Consumers are buying for weddings as those purchases can't be postponed,' Mr Pethe told Reuters.

 

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