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Thursday, 3rd August 2006 (6392 views)

Gold buying in the important market of India has slumped lately amid rising prices and the recent bomb blasts that hit the country's financial capital of Mumbai.

Stockists, importers and jewellery wholesalers were reporting year-on-year falls in sales of anywhere between five and 30 per cent over the course of last month as the precious metal's prices remained volatile.

Continuing political unrest in the Middle East, as well as the renewed fears of Indian residents has led to gold becoming disproportionately high in value and has caused sales to fall.

"People were really in no mood to go out shopping after the blasts," Karmendra Minawala, a partner at Mumbai-based Danabhai Jewellers and Sons, told Reuters, although he did add that sales had improved during the final week of July.

Despite these market-wide problems, there was good news from one of India's high-end jewellery retailers.

Tanishq, which typically targets more affluent customers of gold jewellery, announced a 15 to 20 per cent rise in its sales taken over the course of the financial year to date.

 

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