- Sahit Muja: Albanian Minerals
The gold prices rallied sharply on Friday. The Comex August contract rose $26.70 to settle at $1,592 an ounce. Idia is the top user of gold in the world .
Gold consumption in India rose to 970 tons in 2010.
Albanian Minerals predicts that Indian consumption of gold may climb to 1000 metric tons in 2012. Gold has traditionally been the most popular precious metal investment in India, where brides are often weighed down by their jewelery in a display of wealth and economic status.
The wedding season and beginning of the monsoon season in India and festivals increases the country's appetite for gold. India, gold consumption has been on the rise despite record high prices. About 11 million marriages held a year in India, and gold has traditionally been the most popular . India, which imports most of it's gold bought 815 metric tons of gold in 2011.
The Indian farmers in remote villages use bullion in the absence of banks for savings. The largest buyers of gold in India are farmers, around 70% of gold is bought in rural areas. Indian farmers also invest in gold because they don't trust the banks. Indian's view that gold as the best investment.
Albanian Minerals estimates that gold prices has increased 500% in 10 years . Gold price in 2002 was $309.74 an ounce. While markets have been uncertain in the last few years, gold has been an ideal investment and has provided consistent returns to Indian investors.
Albanian Minerals expect gold buying in India is set to rise . Devaluation of dollar, euro, economic problems, political tensions, inflation, and exchange rates are other factors that will also contributed to rising gold prices and demand.
Sahit Muja
President and CEO
Albanian Minerals, New York
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