MUMBAI: The Associated Chambers of Commerce and Industry of India (Assocham) says buying gold has become one of the most preferred forms of investments in the country.
According to Assocham President Venugopal Dhoot, income from gold has shot up by nearly 34 percent as the yellow metal is now the preferred choice for a major number of investors in the country.
Addressing an Assocham function in Mumbai, he said: “Since disposable incomes of average Indians have gone up significantly, gold has become a preferred choice of investment for a large number of investors”.
Gold imports would grow by 250 tonnes by financial 2008, he said.
Dhoot called for much needed investments into the country to exploit its mineral resources fully and said there is an urgent need to make the country a unique trading hub for gold and diamond businesses.
He pointed out that since the economy is dragging in the United States, the value of dollar has declined drastically against rupee and thus could inspire gold investors.
According to Assocham’s assessment, gold imports in the current financial year would be nearly 1000 tonnes, out of total around 700 tonnes would go for jewellery making and remaining would be used for investments in the form of bars and coins.
The bullish phase in gold would also continue because gold production worldwide has been restricted to 2,500 tonnes only against its demand of over 5,000 tonnes.
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