JOIN USSnowman Foods expands biz
To everyone’s surprise, about 74 per cent of investors in India, the world’s largest gold consumer, said they prefer purchasing gold and related products at current price levels, according to a survey.
Currently, gold prices are hovering between Rs 14,700 per ten gram and Rs 15,100 per ten gram. Among those who were willing to buy gold at current prices, the preference for purchasing jewellery was higher as compared to any other form of gold, a survey by brokerage firm India Infoline Ltd (IIFL) said.
About 35 per cent of investors showed interest to buy jewellery, 27 per cent in gold Exchange Traded Funds (ETFs) and 12 per cent in coins and bars, it said. Interestingly, around 60 per cent of the respondents indicated that their purchase of gold bars and coins was for future conversion into jewellery, it added. “Even at the current relatively-high gold prices, interest in gold remains strong” said IIFL, which surveyed 167 cities in 23 states.
The survey also highlighted the price trend for next six months. It said that 44 per cent of investors foresee “gold prices in the next six months to be higher”, whereas 24 per cent of them said rates may come down. However in the last 12 months, 43 per cent of the investors bought more gold. This signifies that although rising gold prices have deterred some buyers, it equally prompted others to add more gold to their personal wealth, IIFL said.
The survey also noted that 95 per cent of the investors purchase gold from local and branded jewellers, who market investment-grade 22-24 carat gold. India has been the largest consumer of gold jewellery and the survey indicates that it will remain so in future as well, it added.