Indian festival 'to raise gold jewellery demand by 30%

Tuesday, 16th March 2010

The onset of a traditional Indian festival is expected to raise the demand for gold jewellery in the country by up to 30 per cent, according to reports.

Akshaya Tritiya commences on May 16th and is a Hindu festival which marks the birthday of Lord Parasurama and is traditionally celebrated as the commencement of a period of good fortune for the year ahead, Diamond World reports.

"Gold has always been inherent to Indian festivals for its symbolism of auspiciousness and prosperity," states the site.

It goes on to add that the event traditionally inspires consumers to purchase gold jewellery and therefore sales of pieces crafted from the precious metal are expected to rise by between 25 and 30 per cent during the festival period.

Dominic Schnider, analyst for UBS, tells the National Post that gold jewellery demand in India has already begun to pick up and he expects to see a 20 per cent increase in sales compared to 2009.