Gold demand in India, the world’s biggest consumer of the precious metal, may drop 50 percent during this year’s Akshaya Tritiya festival because of rising prices, trading company RiddiSiddhi Bullions Ltd. said.
India, the second-biggest gold consumer, may ease controls on imports after Narendra Modi’s victory in national elections, according to Bachhraj Bamalwa, a director with the All India Gems & Jewellery Trade Federation.
As the sound of traditional drums, trumpets and cymbals ushers Amrita Mannil into the wedding hall, she’s adorned by four finely crafted necklaces, rings, 16 bangles, a glistening belt, dangling chandelier earrings and a stone-encrusted head piece to match the silk borders of her dress. She’s wearing about 800 grams (1.8 pounds) of gold.
Gold jewelers in India, the world’s largest consumer after China, are banking on a surge in demand at the country’s second-biggest bullion buying festival this week to end a sales slowdown caused by import curbs.
Gold imports by India, the world’s biggest consumer, may soar this quarter as a plunge in prices spurs demand for jewelry, coins and bars during the country’s biggest bullion festival, a jewelers’ group said.
A surge in demand for gold ornaments and coins after the biggest slump in prices in three decades is poised to boost profit at Rajesh Exports Ltd., India’s largest manufacturer and exporter of jewelry.