India gold prices may touch Rs 16000 by April

February 02, 2009

Commodity Online
MUMBAI: Global economic meltdown, lure for gold exchange traded funds and investment appeal will drive India's gold prices to a record Rupees 16,000 levels per ten grams in three months, a leading Indian jewellery exporter said on Monday.

According to Chairman of Gitanjali Group, Mehul Choksi, gold prices are rising and rising and it would not be a surprise if gold prices zoom to Rupees 16,000 per ten grams by April this year.

"Demand for gold as an investment opportunity is going up day by day among Indian investors. Added to this is the new apeal for gold ETFs in India," Choksi told reporters. He said people are going to invest more money in gold ETFs. "Gold ETFs a safer bet in times of crisis financial markets and currency movements," the jewellery said.

But nearly two years after India launched the Gold Exchange Traded Funds (ETFs), gold collections by the five gold funds in the country have been dismal. India’s Gold ETFs hold just over 5 tonnes of gold whereas Indian households own about 15,000 tonnes of gold, comprising around 10 per cent of global stocks of the yellow metal.

India is the largest consumer of gold in the world. But the performance of the five companies that have launched Gold ETFs funds in the country has been below average. In Europe and US, gold ETFs have been doing wonderfully well supported by investment demand, with holdings on the ETF hitting another record on safe-haven buying driven by chaos in the banking sector. Gold ETFs track the spot price of gold and are listed on stock exchanges.

Gold prices in India have shot up by 20 per cent to Rs 14,175 per 10 gram on February 2 compared to Rs 11,720 per 10 gram in the year-ago period.

Choksi said uncertainty in the global financial market and the rupee movement will be key drivers for gold prices and currently there has not been a significant fall in demand in his stores due to price rise.

To buy Hallmarked 999.9 Pure Swiss Gold Bars, Gold Bullion, Gold Ingots & 916 Gold Coins in Singapore or convert your 916 Physical Gold to physical 999.9 Pure Swiss Gold Bars, Click on Buy Gold to find out more. You may Sell Gold to us too.

[ Back To Home ]

[ Site Map ] [ Terms & Conditions ] [ Disclaimer ] [ Contact ] [ How To Link To Us ] [ Gold Directory ]

Buy Gold & Sell Gold - Singapore Gold Bullion Dealer