Demand for gold zooms as buyers ignore high prices
High gold prices are not deterring Indians from buying gold during Akshaya Tritiya. HT reports.business Updated: May 05, 2011 21:48 IST
High gold prices are not deterring Indians from buying gold during Akshaya Tritiya. In fact, buyers have placed advance orders for the yellow metal and demand is growing, market experts said.
“The demand is better than last year as people are now getting used to these price levels of gold and we have witnessed good number of advance bookings,” said Bhargava Vaidya, a Mumbai-based gold trader.While ETFs (exchange-traded funds) are turning into a better gold investment option for various reasons such as low cost, no storage issue and no making charges, mutual funds are also trying to rope in investors into their gold ETF schemes.
Sundaram Mutual Fund launched its Sundaram Equity Plus (invest in equity and gold) only on Wednesday.
“It was a conscious decision to launch the fund around this festival,” said Srividya Rajesh, fund manager, equities, Sundaram Mutual Fund.
While the Hindu wedding season follows Akshaya Tritya, gold demand is likely to remain strong. In 2010 India accounted for 25.2% of the global gold consumption and 42% of global jewellery consumption. “I buy gold every year on the auspicious occasion of Akshaya Tritiya and price is not a factor,” said Banshraj Yadav, 65, who is in construction business.