All the signs of a gold boom were visible at the venue of the India International Jewellery Show (IIJS) in Mumbai this week. Even as India gets ready for ushering in the festival season with Raksha Bandhan on August 24, the IIJS provided a perfect start for the gold market in the country.
The event kicked off on magnificent scale as the jewellery trading community converged exhibiting latest designs and trends in the jewellery world.
World Gold Council showcased various unconventional and exceptionally creative pieces of gold products through its theme 'Gold Jewellery and Beyond'. The IIJS, which displays gold ornaments from 700 domestic jewellers and 200 overseas makers, is open to the public from August 19, to August 23, 2010.
With the big success of the event India's gold merchants are expecting a sustained pick-up in sales for the second round of festivals, as a reviving economy and stable prices may aid sentiment, triggering a reversal in declining trend in imports.
Market analysts said in India people have started buying from July for the upcoming weddings.
Gold imports in 2009 fell to its lowest level in more than a decade as the worst monsoon in nearly four decades and fears of recession overseas dented sales.
There could be a rise of over 10 percent in imports this year as even monsoon are good, industrial activity is picking up along with employment.
Demand for gold in top consumer India hinges on a good monsoon, which boosts farm output and rural incomes. The crucial monsoon rains are likely to be above normal in the remaining two months of the June-September season.
Gold imports in India, the biggest consumer, rose 18.9 percent to 155.6 tonnes in the first six months to June, and jewellers say there could be a reversal in trend this year given the positive feedback from consumers.
Prices have fallen more than 2 percent from their all-time high of Rs 19,198 per 10 gm struck in early June, when investors overseas sought a safe-haven instrument amid the economic turmoil in the European Union. Prices have been in the range of 17,500-18,750 for most part of the year.
Industry participants say jewellery exports to the US would see a rise compared to other traditional markets like Japan and the European Union.