Wednesday, 21st March 2007 (3404 views)

Gold buyers in India chose to replace jewellery purchases with that of coins and bars instead last year, according to gold expert Madhusudan Daga.

He explained to the Indian Financial Express that last year could be described as both a "unique" and "enigmatic" year for the gold bullion industry in India due to the changing nature of gold investments.

Mr Daga also said that "the price sensitive nature of the Indian demand is solely confined to the jewellery. It was price volatility that impacted demand".

Demand for studded jewellery increased last year on 2005, doubling to 120 tonnes and total demand for gold within India was found to have risen by just under five per cent (4.73 per cent).

One of the factors attributed towards the rising demand for coins and bars is that India saw more banks offering their own golden offerings to consumers during last year and kilo bars were high on the list of investments for some higher-earning members of the population.

 

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