Gold May Have Rallied High, but Indians Unwilling to Profit from It

by Sutanuka Ghosal
India Times, Economic Times

KOLKATA: The rising price of gold since the beginning of 2016 has not enthused Indians to liquidate their household gold to create liquidity. Indians have reduced gold offerings to temples as well.

Gold has appreciated 25% from the beginning of this year on the back of geopolitical tensions, Britain’s decision to leave the European Union and the growing expectations that interest rates, which are arguably the primary counterweight to gold, are set to stay lower for longer and could even fall further.

“Despite prices surging ahead and a liquidity crisis being reported, we have not seen Indians selling household gold. Last year, when it touched Rs 29,000, we had seen people offloading old gold. But this year, we are not seeing that trend though price is around Rs 31,500-31,800,” said Jitendra Jain of Mumbai-based scrap dealing firm Jugrag Kantilal.

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