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Tuesday, 26th September 2006 (5583 views)

The world's largest single gold-buying market, India, may import up to ten per cent more gold on the back of lower global prices, according to the chairperson of the Gem and Jewellery Export Promotion Council, Bakul Mehta.

In an interview with Reuters, Mr Mehta said retailers expect a more vibrant buyers market for the autumn of 2006, which is dominated by traditional Hindu and Indian festivals of celebration when gold-buying is at its height.

As a result, many plan to import more gold to cover their expected levels of sales. Additionally, exports of Indian gold jewellery are expected to rise, some predictions suggesting by as much as 15 per cent, due to the softer prices.

"I believe that a steady gold price is a sound indication that a reasonably good season is ahead of us," Mr Mehta told the news agency.

Disposable incomes in India, Asia's fourth-largest economy, have been steadily growing in recent years – at an average rate of eight per cent in the past three years. This, coupled with the relatively low gold price, is expected to act as a catalyst for an improved autumn market.

 

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