India - The gold re-shines with the weddings
04-09-2008 newspaperThe gold might raise 10 % at the end of year impelled by the demand for jewelry shop during the wedding station and festivals in the India, according to JPMorgan information. The period has raised the prices every year from 2002, being a September the most active month in buys, as tell the JPMorgan analysts. In the last decade, the gold has raised an average of 10,1 % from September until December, according to a study of the financial institution.
India, the biggest world golden buyer, increased the imports last month 56 %, the first growth in 11 months because the prices falls made to raise the sales of jewels.
The gold, which has fallen down 3,5 % this year, might repuntar for the demand for jewelry shop in India and Middle East, he said last month Société Générale.
“We should see the prices becoming stable and move to the rise”, said by phone Jonathan Barratt, general manager of Commodity Broking Services in Sidney. “This is a dead season”.
Festival of the Light
The Indian demand normally rises in the wedding period, which lasts from September until December. The jewelers also buy the metal for the Hindu Diwali festival, or that of the Light.
“We have realized an analysis to determine if the speculation concerning the effect of the wedding period in India is real, or simply an urban legend”, said James this Wednesday in the report.
“Our analysis indicates that the Indian weddings and the period of festivals have had a positive effect on the price of the gold from 2002. It suggests that we might see a strong recovery of the price in the last four months of 2008 ″.
In the last 10 years, the price of the gold at the end of every August was 3,2 % taller of average than at the beginning of year, according to the JPMorgan analyses. At the end of September, one has increased 8,2 % of average. From September at the end of December, the price has kept on growing, increasing of 13,3 % annual average, he said.
The gold also might turn impelled by the descent of the world production of the mines and the increase of the costs of production, he said the report.
04-09-2008 Bloomberg
