Indians shifting gold buying to bangles and bars

In a nation that has the love of gold is legendary, financial advisor Biju Daniel is one of the many Indians who are thinking about how they gather a wealth of precious jewels metal.Daniel woman owns at least pounds, and he sports a gold watch. But he is also wise NOK to realize that the world's largest consumer of gold falling out of love wearing his wealth, preferring to hoard coins, bars and bullion-based investment funds because they are looking for a safe return to the ravages of inflation and the dictates of fashion. 

"This generation is not entirely golden. They are bangles but they do not use them," Daniel, is Shreyas Investment Services, told Reuters from his office in the basement, according to package together to provide customers with SBI Gold fund investments. "Look at colleges, Indian girls out there are not interested in gold jewelry. My wife is about a kilo of gold jewelry, but my daughters do not care." 

Demand for gold bars, coins and other pure investment in India, Asia's third largest economy, rose 83 percent in 2010 from 349 tonnes previously, according to GFMS increased precious metals consultancy, which is part of the amount of gold used in jewelry Reuters.The Thomson in 2010 36 percent to 685 tonnes - giving 34 percent of total investment demand for the purchase of up to 28 percent of the 2009TH 

"Gold jewelry has come a long entry for an alternative currency," said Gnanasekar Thiagarajan, director, Commtrendz Research. "Investment demand may exceed the demand for jewelry in the next two to three years," he said. 

A safe investment 

The Indian's passion for gold from the country for centuries and is home to one of the oldest in the world - but now largely abandoned - mines.Gold, the ultimate status symbol, is the gift of choice during the holidays, and jewelry stores across the country with customers before throwing a traditional wedding season and festivals in the country, where brides wealth is often weighted down by their parents give them. 

Typically jump gold buying in India 38 percent in the second quarter, compared with a year ago, as soaring prices simply feeds the perception that it was a wise investment because of concerns about the global economy deepen.Global price of gold has risen 29 percent in 2011 and hit a record high 1,920.30 an ounce on Tuesday. India's domestic price of gold has risen 33 percent and touched the highest 28 744 rupees per 10 grams on Tuesday. 

India's central bank and inflation nudging 10 per cent of the key lending rate at 8 percent, savings and fixed investment looks particularly vulnerable, the Bombay Stock Exchange fell 16.5 percent this year. "If you look at real interest rates are still negative, so investors will inevitably look at the gold," said Gargia Shah, metals analyst at GFMS. "Investment demand has literally exploded." 

Cookies VS Bangles 

World Gold Council data show in the second quarter of 2011 rose 78 per cent of Indian demand for investment is 108.5 million tons a year ago, while jewelry demand rose 17 percent to 139.8 million tonnes.In China's largest gold consumer after India, jewelry demand rose 16 per quarter, and comparable investment demand rose 44 percent.Unlike jewelry, gold investment value better, because production costs are significantly lower, and buyers do not have to worry about turning in the keys, making them harder to sell. 

R.C. Joneja, white-haired head jewelry store in New Delhi, the central Janpath district, says it costs about 1000 rupees ($ 21) to make 10 grams of "cookies" - a bar about the size of a credit card - while the cost of manufacturing jewelry pieces of the same weight, would cost three times as much. "Customers prefer to buy them, if only for investment," he said, shows a coin and a biscuit. "But if someone wants to buy jewelry, they will definitely buy more jewelry." 

PAPER GOLD 

While owning physical gold may now have been difficult to have such a high price, the Indians picked up the "paper gold" means, such as those sold by Daniel financial advisor to the minimum monthly payment of 100 rupees (about $ 2). Such requirements are still a small investment in gold paper around the country, where 42 percent of the population is barely NOK eating and 15,000 rupees a month makes you middle class - a simple Signet ring cost 20,000 rupees. "Investment in gold has become more affordable," says the flyer for the SBI Gold Fund, which closed its offer on Monday. 

Reliance Capital, gold exchange traded fund (ETF), is India's third largest gold funds more than tripled the number of its investors since March, and people invest in the electronic route person.Despite prices are already higher than they've ever had, has Gold has always been investment.Funds worth investing in gold in India in August were the top performers in gold exchange traded funds (ETFs), garnering 15.2 percent of returns, data tracker Lipper, ThomsonReuters company, showed. "Absolutely, you will see this trend continue," GFMS said Shah, a consultant to the investment appeal of gold jewelry. "We have not the other way if there is a change in the gold price trend." Zaveri Bazaar, Mumbai, Warren jewelry stores, is the commercial center of India's bulk gold, is a businessman Sanjay Darji focus on the rest of the gold a good investment because it shares the coins.

"I bought one, two and eight gram coins for investment purposes. The thing about coins is quality is assured, unlike jewellery," Darji said.

"It's better than keeping idle money at home."

($1 = 46.110 Rupees)