Streets of India teeming with gold jewelry

Gold jewelry sales received another boost in India, the world's biggest gold jewelry market, where festival season demand has come into full swing.

Indian daily the Economic Times claimed that since the onset of the autumnal festival season gold jewelry demand had risen by as much as 20 per cent, with demand likely to remain high through November.

On religious occasions takers increase for jewellery of the plain gold variety, for example at the major festivals of Diwali and Dhanteras, while for lighter social occasions women are reported to prefer studded jewelry, often containing gold.

Even with demand rising and gold jewelry becoming big business, the Economic Times claimed that nearly 17 per cent of the gold jewelry trade in the country is still held by traditional family-run stores.

Meanwhile in neighboring Pakistan gold jewelry sales also have high potential, but entry of the precious metal into Pakistani markets is reported by national newssheet the Daily Times to have been held back by taxation disincentives.

According to the Pakistani gold and jewelry Strategic Working Group, the one per cent wealth tax on gold imports was reducing its entry onto the market, leading to increased smuggling of the precious metal.