India turns from gold to equities
by Gill Montia

While the gold price reached a record $914 oz this week, Indian investors are turning to gold equities rather than the physical metal.
The nation currently buys a third of the world’s gold output but today even some of the country’s bullion dealers are selling the metal in favour of stock market gains.
The trend seems to be driven by fears of a correction in the gold price, following last year’s rise of over 30%.
In recent times, many Indian investors preferred gold to the stock market and although the current shift towards stocks is slow, its affect on gold is already evident.
Gold imports by India fell as much as a fifth last in 2007 and could fall further if the price of the metal stays high.
While bullion analysts are optimistic, with many expecting the price to test the $1,000 oz barrier before the end of this year, the Indian jewellery market is already experiencing a downturn and a further 10% rise could prove disastrous.
Gold jewellery has traditionally bee seen as an auspicious gift for Indian marriages because of its investment value.
However, confidence in the Indian stock market is rapidly increasing and those with an interest in equities are beginning to lose their fascination with gold.
Add to Bookmarks:
Related posts to: India turns from gold to equities
India seeks overseas partners in developing gold reserves ...
India proposes gold import ban ...
Indian state heads demand say in mining laws ...
Gold prices hit another record above $1,080 per oz ...
Gold adds almost $4 in New York trade ...
Latest Metals News:
US pending home sales data helps copper prices
Positive data chases gold prices lower
Gold gains on search for safetey ahead of economic data
Gold gains as US dollar weakens
Gold prices fall on US jobs news
US durable goods orders, new home sales drive metals price moves
Gold gains, copper drops on US home sales data
Copper prices fall on economic, demand concerns
US unemployment numbers hurt copper prices
Copper prices gain on more inventory declinesPrevious: « Most metals prices decline on session
Next: Metals prices mixed on day »
Visited 4428 times, 1 so far today