Mike Curtiss (6
"Gold, Silver Supply Runs Dry for Diwali Festival"
Gold, silver coin supply runs dry during Indian festival
International Business Times ^ | November 5, 2010 10:47 AM ED
Posted on Saturday, November 06, 2010 12:05:07 AM by DeaconBenjamin
of precious metal coins during the festivals in India, the world's
largest consumer of gold, are higher this year as compared to last
year, the Times of India reports.
Many jewelers ran out of
low-denomination gold and silver coins on Wednesday evening, when
Dhanteras kicked off the first five days of Diwali. The coins are
typically gifted during the holidays.
''Most markets are
witnessing a huge crowd," Praveen Khandelwal, president of
Confederation of All India Traders, told the newspaper. "Business has
been much better in comparison to the past two years."
demand for gold typically rises by 40 percent during this season, when
Indians celebrate the festival of lights. And the belief that sales are
better this year was echoed by an advocate of Indian traders.
has been much better than we expected," D N Rajpal of Lajpat Nagar
traders' association told the newspaper. "During the weekend, there was
hardly any space to walk in the market. Even on a Wednesday, there was
a huge rush on account of Dhanteras. People turned up in large numbers
to purchase gold, silver and cutlery."
Physical demand for gold
in India helps boost prices around the world - while most gold is still
bought and stored for investment and hedging, India leads the world in
consumption - and Indian buying can help American investors in gold.