VICENZA, Italy, January 17, 2011 – Indian demand for gold jewellery is holding up well despite near record prices as consumers increasingly see gold as aspirational because of the strong investment performance of the metal, a senior World Gold Council (WGC) official said.
“What we see in India is a very short-term hesitation every time a gold price rise occurs,” David Lamb, Managing Director, Marketing and Jewellery, of the World Gold Council (WGC), told Jewellery Outlook in an interview at the Vicenza Fair.
However, he said that Indian consumers looked very carefully at the intrinsic value of gold.
“The more gold becomes more precious, more valuable, more expensive, so aspiration levels kick in even higher,” he said.
Lamb said he was optimistic that Indian gold demand could hit a record high in 2010, possibly exceeding 760 tonnes.
He noted that the high volatility of the gold price led retailers to fix prices more frequently in order to maintain margins.