Housewives cash in as India learns that even gold has its price
India’s love affair with gold is waning as high prices deter casual buyers in the world’s largest gold importer and savvy housewives try to sell their spare jewellery to capitalise on rocketing prices.
As gold, which traditionally is viewed as a safe haven in uncertain times, hovered close to record highs yesterday, Suresh Hundia, head of the Bombay Bullion Association (BBA), said that Indian consumers were deferring all but the most essential purchases. “Households are selling spare gold. There is zero demand at these prices in India,” he said.
Gold hit a record $923.40 (£465) an ounce in New York last week, as investors hurt by tumbling share prices put their money in the yellow metal. Prices have also been buoyed by power outages in South Africa, which have hurt production in goldmines there.
Source: The Times