Tuesday, 11th April 2006 (3874 views)

Trimuti Zaveri, a partner in a prominent Mumbai jeweller, has told Reuters that consumers are slowly gaining confidence in the renewed high price of gold.

Mr Zaveri, of Tribhovandas Bhimji Zaveri and Sons, said of the current high value of gold in the traders markets that has driven up jewellery costs: "People now have a little more confidence in high prices."

He was equally confident that any slight drop in the price of gold, back to $565 an ounce for example, would herald an aggressive buying policy from wholesalers.

Coupled with the seasonal rise in the trade of gold wedding rings and related gold jewellery, this would spark a recovery among gold retailers he said, who have been struggling with sales lately as prices of gold have hit quarter-century highs of $600.

Traders and analysts alike have supported this opinion: "The higher retail gold prices have dampened the purchase of gold jewellery but it is nothing very significant," one gold trader in Dubai told the Khaleej Times.

"I expect the jewellery sector to maintain current-year sales, barring any unforeseen circumstances," the trader concluded.

 

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