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Festivities & investors prompt jewellers to stockpile yellow metal

10
Sep '05
Jewellers have been stocking up on gold ahead of the Indian festival season and investors have also been flocking to the market.

Investors are taking a keen interest in gold due to speculation that the US will not raise interest rates in the aftermath of hurricane Katrina.

Jewellers are buying gold for immediate delivery in expectation of Christmas trade in addition to the busy wedding season in India, the largest consumer of gold jewellery.

Gold is undergoing a surge in popularity: the World Gold Council's recently released figures recorded a 14 per cent increase in global gold demand in the second quarter of 2005. Gold jewellery is also making a comeback on the catwalks after the recent monopoly of platinum.

Gold demand looks set to continue its rise at the onset of the traditionally busy period of gold jewellery sales.

World Gold Council


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