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.
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.
India’s rupee fell to a 10-week low on speculation gold importers are stepping up dollar purchases today on Akshaya Tritiya, a festival day on which it is considered auspicious to buy the metal. Government bonds gained.
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.
Titan Industries Ltd., India’s largest maker of branded jewelry by market value, plans to expand sales of diamond adornments to shield profit margins as the rising cost of gold crimps demand for the precious metal.
India, the largest gold buyer, may raise an import duty for a third time this year to curb purchases and reduce a record current-account deficit, according to industry executives, who said an increase would hurt demand.