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Indian gold jewellery demand will rise over 10% in 2012

Demand for old jewellery in India will rise by 10%-15% in the current year, says Mehul Choski, head of Gitanjali Gems- India’s largest jewellery retailer.

In an interview with Reuters, Choski says that “For the whole year we will end up with a 5-7% volume growth … (In 2012) I expect, as the prices of Gold come down, it will once again catch up the momentum and will grow in volume by 10-15%”

Earlier, the Bombay Bullion Association (BBA) had predicted Indian demand to fall in the first quarter of 2012 unless prices weaken further. Latest data had also shown that Gold imports had declined by 56% in Q4, 2011

The Indian government has also raised the import duty on gold, taking into consideration the huge volumes of the metal being imported to the country. Import duty on Gold has been increased to 2% of value from the earlier flat Rs. 300/ 10 gm

Given that gold price still remains high and increased tax on imports, it remains to be seen if the Indian Jewellery demand does rise by over 10%. – CommodityOnline

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Posted by on Jan 19 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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