Wednesday, 30th June 2004 (3228 views)

The managing director of the World Gold Council in India has claimed that gold demand in India is going to continue to grow considerably this year, despite tough competition from consumer goods.

Among the reasons demand is set to rise is a rapidly growing economy, good harvests caused by lots of rain last year and promotional activities.

Managing director of the World Gold Council (WGC), Indian subcontinent, Sanjeev Agarwal told the Hindustani Times: "The first five months of 2004 have been very encouraging and we hope the same trend will continue this year, as the economy is doing very well and rural incomes have risen after good harvests.

"The passion for gold jewellery will continue in India as it is not only a fashion article but also financial security for many people, especially in rural areas," he added.

Speaking to Reuters, Mr Agarwal explained that Indian consumers will spend a considerable amount of their surplus funds on gold coins and ornaments, even though they have also been spending more on consumer goods.

In addition it is thought that if gold prices had not grown in 2003, then the gold industry would have performed much better.

The demand for the precious metal in India grew 25 per cent to 149 tonnes in the first quarter of this year, according to Gold Field Mineral Service figures.

 

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