Gold price trends and new players in the market
Consumers in both India and China seemed nonplussed by the record high prices .The diversity of demand for gold, both by sector and geography ensures that the outlook for gold remains strong for the remainder of 2010.
Despite increasing gold prices, consumers in China and India will continue to drive market growth, particularly in jewelry.
Gold prices averaged US$1,109.1 in the first quarter, a 22 percent year on year increase. Prices struck a record high US$1,248.9 in mid-May, when investors ditched the euro to seek the relative safety of gold following Europe’s sovereign debt crisis.
During the first quarter, Indian consumer demand surged 698 percent to 193.5 tons. Chinese demand was more modest; rising 11 percent to 105.2 tons in the same period of time. The first four months of the year typically show a spike in demand for gold jewelry in both countries, as the Indian spring wedding season and the Chinese New Year spur consumption.
India is the largest consumer of gold in the world, accounting for 25 percent of total jewelry sold and 19 percent net retail investment demand in 2009.China is the world’s largest producer of gold and second largest consumer, although its per capita consumption is quite propecia persistence low compared to India.
Even in such a tumultuous market scenario, Titan Industries is targeting a seven-eight rimonabant buy percent share of the gold jewellery market by 2015.
The total size of the gold jewellery market in the country is around Rs.1 lakh crore.Under its jewellery division; Titan has three brands – Tanishq, Zoya and Gold Plus. Tanishq, the oldest brand, has a more than 50 percent share in the branded gold jewellery market in the country.
Zoya is targeted at high networth individuals.The company has aggressive expansion plans for its Gold Plus brand in the current fiscal (2010-11) targeting tier I and tier II cities.In the first two months (April and May) of the current fiscal, the jewellery division has clocked 30 percent growth in sales, he said.
In the last fiscal (2010-11) it has posted 27 percent growth in sales. Titan hopes to maintain similar growth in jewellery sales in 2010-11 despite rising gold prices. It has 130 jewellery retail outlets across the country
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Source: [Sify]
Comments
One Comment on Gold price trends and new players in the market
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Kunal Desai on
Wed, 9th Jun 2010 2:30 pm
Gold seems to be rising high because of the investors losing hope in paper currencies and investing more in gold. The domestic consumption in India is mainly monsoon dependent, a good monsoon will increase rural buying further and a bad will pull down gold. The gold price seems to move up very quickly which definitely indicates a fall in near future. 19000 per 10/gm seems to be OK though on the higher side but anything more than that seems to be unrealistic. Gold will be back to 17K level in next 2-3 months and will be a good time to buy.
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