News Header

 

Holidays prompt Indian gold-buying

Release Date: 
Tuesday, November 9, 2010

Holidays prompt Indian gold-buying

Nov. 9, 2010

India this year imported as much as 25 percent more gold than last year for the festivals, totaling as much as 25 tons, the Economic Times newspaper of India reports.

Gold is typically given by Indians during the five days of holidays in India which begin with Dhanteras followed by Diwali.

"High returns compared with what banks offer and ready encashability have led to imports by banks rising 34 percent in October to 43 tons from a year ago, while imports in the festive week to Monday have risen about 25 percent to 20-25 tons even as the price has risen by 28 percent to 20,119 rupees since last Diwali," Prithviraj Kothari, newly elected president of Bombay Bullion Association, told the publication.

This year's festivals saw demand for gold bars weighing between 5 and 50 grams, he said. The demand particularly came from the low- to middle-income individuals.

"High-income groups have mainly opted for diamond jewelry," Kothari said.

Gold prices recently reached record highs as investors and analysts remain concerned about the dollar’s devaluation and the potential for future inflation.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

News Footer

 

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.