‘Gold prices may go up soon’

November 11th, 2008 - 10:24 pm ICT by IANS  

Panaji, Nov 11 (IANS) The rising demand for gold in Europe may soon lead to a temporary shortage of the yellow metal in India, sparking a sudden rise in gold prices, a leading bullion importing agency official has said.”Today Europe is not able to supply gold to India, because European investors have started heavily investing in gold,” Minerals and Metals Trading Corp (MMTC) chief general manager Asheesh Majumdar said.

Majumdar, who heads MMTC’s precious metals division, was in Goa to announce the second edition of the agency’s gold exhibition The four-day event last year witnessed daily sales of almost Rs.10 million.

Despite the global meltdown, gold sales in India went up nearly 15 percent this year. “People have learnt that instead of investing in the stock market, which has been volatile, gold offers them steady and assured returns,” Majumdar said.

Meanwhile, Gitanjali Gems Ltd, co-hosts of the gold jewellery exhibition, announced that it would tie up with MMTC to set up jewellery shops across the country.

“We have already signed a memorandum of understanding with MMTC and we are working on the finer details,” Gitanjali chief executive Shekhar Wadke said.

Gitanjali accounts for four percent of the branded jewellery market share in India.

MMTC, which clocked a Rs.350 billion turnover last fiscal also handles other precious minerals, ore, metals, fertiliser, coal hydro carbon and agro commodities.

India imports nearly 500 tonnes of gold every year.

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