Gold Made Simple

Gold Made Simple

March 30, 2010 03:00 ET

Gold Imports Up in India Ahead of Wedding Season

MANCHESTER, UNITED KINGDOM--(Marketwire - March 30, 2010) - Gold imports are up in India this month, as jewellers stockpile ahead of the country's wedding season. There are as many as one million weddings planned for the months of April and May, which comes with a strong demand for the precious metal.

Suresh Hundia, President of the Bombay Bullion Association, told Reuters that gold imports into India rose to between 23 and 28 tonnes in March, a massive increase from the 4.8 tonnes seen in March 2009. He forecasts that demand may well remain at this high throughout April and May as the wedding season is underway.

Couple this with a consistent demand from investors for gold bullion and the precious metal remains very much popular. Investment continues into gold as the metal is seen by many to be a 'safer' or 'wiser' investment than some volatile paper currencies.

The price of gold recently fell to a six week low. The price per troy ounce is generally inversely proportional to the performance of the US dollar, meaning that the strong the dollar, the lower the price of gold. This, of course, led to a surge in investment during the recent recession, in which the dollar was particularly weak. Yet even out of recession, the price remains high and demand continues to match it.

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