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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (74565)	8/6/2001 8:55:33 PM
From: lorne	Read Replies (2) \| Respond to of 116958

Indian gold: competition mounts in dowry market Tuesday, August 07, 2001 .......BOMBAY : Gold consumption in India is changing as the metal faces competition from other forms of secured investments and consumer goods as dowry items, traders say. "Store value of gold is gradually falling with the spread of the banking sector in the country," said Nayan Pansare, a senior official of gold trading firm Inter Gold Ltd. .......Consumer goods like televisions and refrigerators were increasingly finding acceptance in the dowry basket at the cost of gold ornaments, he added. .......Traditionally gold jewellery has been seen as an essential dowry gift in India, mainly in rural areas, traders said. ......."Earlier dowry gifts were dominated by gold jewellery but now parents prefer to gift some government saving instruments to their daughters," said R.K. Das, general manager (treasury) of Adani Exports Ltd. .......Traders said the domestic price of gold had fallen to 51,000 rupees per bar (of 116.64 grams) from about 66,000 rupees some five years ago. .......The expansion of banking in rural India, which absorbs nearly 70 percent of the country's total gold consumption, has also reduced the importance of gold, they added. .......SILVER LINING: But India's consumption of gold is likely to go up by five to 10 percent each year in the next few years due to increasing population, rising incomes and fashion trends, traders said. .......According to the industry-funded World Gold Council (WGC), gold demand in India reached 855 tonnes in 2000 against about 833 tonnes in the previous year. .......Gold consumption rose by 23 percent to 243 tonnes in January to March this year over the same period of 2000 due to buoyant demand in the marriage season and retailers re-stocking, the WGC said. ......."Today's young generation is fashion conscious," said Pradeep Kumar Godha, director of Shantivijay Jewels Ltd, adding that they were also price conscious. .......Traders said demand growth for diamond- or platinum-studded jewellery was slow because of price trends.-Reuters brecorder.com