Gold rush in India, China as price plummets

India’s Golden Temple

Buyers in India and China are rushing to purchase gold as its price declines.

As gold fell to about $1,400 an ounce in the past week, jewellery retailers in India saw a boost in sales and expect volumes to continue to increase in the coming months, according to Al Jazeera English.

One national retailer, Shree Ganesh Jewellery House, said consumers were waiting for a price correction and demand has risen across the country.

Rajesh exports, another retailer, said it has sold 10 times as much in the past week and speculates a new wave of purchasing may hit if prices remain low.

A senior commodity analyst in Mumbai said that regardless of returns based on price, gold has always been a top priority for Indian investors.

For the the 12 months ending in March 2013, the country has imported $38 billion worth of the precious yellow metal.

China’s news agency Xinhua reports consumer gold purchases have picked up speed in the country, especially among citizens of modest means.

Gold bars and accessories have sold out at one retailer in downtown Beijing, after long line ups outside stores.

Consumption of the yellow metal reached 832.18 tonnes last year in China, up 9.35 tonnes year-on-year, with gold jewelry accounting for 503.75 tonnes of that total, a 10.09 tonne increase year-on-year.