Gold sky-rockets to all-time high in India on Saturday as traders gear up for spectacular jewellery festival

$130 extra an oz would make any bride blush

The price of gold zoomed to an all-time high of Rs24,770 per 10 grams by adding Rs420 in New Delhi, India on Saturday on frantic buying by stockists and investors.

India is the world’s number one consumer of gold and official figures released on Friday show the country’s revenue from the importation of gold almost doubled in 2010-11 compared to the previous year. The news follows the announcement by the World Gold Council that it is teaming up with jewellers to sell discounted gold to price-conscious Indians during the all-important Shraavan Aavani month that culminates in a festival next Friday.

DailyBashkar reports the emergence of buying by retailers for the festival season and the reallocation of investor funds from melting equities to surging bullion further influenced the market. On Friday, gold held onto firmer levels in North American trade at $1,663.40 after climbing $14 earlier in the day.

Economic Times reports customs duty collected from the import of gold was Rs2,553.52 crore in 2010-11 against Rs1,567.64 crore in 2009-10, Union Finance Minister Pranab Mukherjee said. China is number two gold importer after India and as far as silver is concerned, India is among the largest consuming countries along with United States, Canada, Mexico, United Kingdom, France, Germany, Italy and Japan.

China Business News reports banking on the need to perform a certain worship of the God of prosperity and wealth for a festival that falls on August 12, the World Gold Council has teamed up with jewellers across the country, offering huge discounts and simple monthly instalment plans. Investors, who were starting to worry that the high price had pushed gold out of their reach, are being lured with many fancy schemes.

Mineweb reports price conscious customers are being lured to “pre-book eternal prosperity and get 10% off on making charges”, or even 100% discounts on diamond studded gold jewellery. Smaller retail jewellers, who are taking part in the festival, have already reported a jump of 30% more foot falls in their stores.

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