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Soaring prices make gold a Valentine's day darling

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Press Trust Of India New Delhi
Last Updated : Jan 25 2013 | 2:49 AM IST

The pricier the gold gets, the more desirable it becomes, with many women yearning for the precious metal as a Valentine’s Day gift, reveals a survey.

“The higher gold price has added to gold jewellery’s desirability despite these challenging economic times. Gold’s perceived value and enduring emotional appeal are not mutually exclusive and sets it apart from other traditional gifts and apparently, holds the key to women’s hearts on Valentine’s Day,” World Gold Council’s (WGC) 2008 jewellery survey said.

The survey was conducted by independent research firm GfK in the key gold jewellery markets, including India, China, Saudi Arabia, Italy, Turkey and the US. About 76 per cent of women, from the total 7,500 aged between 15 and 65 years, said that “it is everlasting” and Valentine’s Day is one of the favourite occasions for receiving gold jewellery.

WGC Managing Director Philip Olden said, “Our survey shows that Valentine’s Day is an important occasion for receiving gold jewellery for women in different regions around the world.”

“With two-third of demand coming from the jewellery sector, understanding our consumer is crucial,” he said.

Retailers are under severe financial pressure and unlocking the consumer purse through effective promotion of gold jewellery is critical, Olden added. Even the younger segment, who are typically more interested in spending money on gadgets such as mobile phones than spending their disposable income on jewellery, appreciate the romance of gold jewellery with 30 per cent saying they wanted to receive it for Valentine’s Day, the report said.

It further pointed out that in India, women regard gold as an indicator of emotional ties, with 81 per cent claiming that the amount spent on it reflects how valued someone is.

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WGC, India, Head of Marketing and Development, Madhumita Dutta said, “Indians love gold as it reflects both, their culture and fashion and is the perfect expression of love.

Only gold can convey emotions and create a connection as it has an everlasting bond and emotional connect which makes it a quintessential gift.”

Women in Turkey and Saudi Arabia were shrewd on this point, with 65 per cent and 70 per cent, respectively citing that “gold will not lose its value” as a key reason for buying gold as a gift. In contrast to jewellery, which has clear financial value, other luxury consumables were viewed as having short-term aesthetic appeal and, therefore, lacked the investment value and the longevity of gold.

In the US and China women cited more romantic sentiment behind buying gold as a gift, with 56 per cent in both countries saying gold “is a symbol of love”.

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First Published: Feb 10 2009 | 12:32 AM IST

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