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Indian festivals prompt mass gold purchases

Release Date: 
Friday, November 5, 2010

Indian festivals prompt mass gold purchases

Nov. 5, 2010

Two annual Indian holidays are increasing demand for gold and silver coins, which are typically purchased and gifted during the festivities, the Times of India reports. India is the world’s largest consumer of gold.

Low denomination coins in both precious metals ran dry in various markets and banks during Dhanteras this past Wednesday evening, according to the owner of Matadin and Company jewellery shop.

''Sales figures of gold and silver coins have gone up by 50 percent due to Dhanteras," Pawan Jhalani told the newspaper. "People turned up in droves during the evening to buy gold and silver tokens. In fact, banks were out of gold and silver coins of lower denominations by Wednesday evening. We are satisfied with the sales.''

Dhanteras, the first of five days of the Diwali festival, falls in the beginning of the month. As such, Indian citizens have more ready cash to spend on purchasing gold.

"With Dhanteras and Diwali falling in the first week of the month, people have lots of money in hand to spend, which is responsible for the huge turn-out in most markets on weekdays too,'' Praveen Khandelwal, president of Confederation of All India Traders, told the newspaper.

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.

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†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.

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