Gold sales up

Demand for gold in India in the first half of 2004 (calendar year) was 20 per cent higher in rupee terms and 10 per cent higher in tonnage terms than in the corresponding period last year, according to the World Gold Council (WGC).

The figures compiled by the Gold Fields Mineral Services reveal both jewellery and retail investment demand was buoyant in the April-June quarter maintaining the trend seen in the previous quarter. Total consumer demand for jewellery and net retail investment was up by 12 per cent in the second quarter of 2004.

Sanjeev Agarwal, managing director Indian sub-continent of WGC, said, "The demand for gold for investment continues to surge internationally because of some of the fundamental characteristics of gold such as inflation hedge and a hedge against a weakening US dollar. We have seen similar trends in India also, with investment demand for gold increasing by 35 per cent in value terms, in first half of 2004 as compared with the first half of 2003."

Gold jewellery sales rose, specially from mid-February 2004 to May 2004, after prices stabilised from peaks reached in January 2004.