Gold and silver prices in India hit a new all-time high today.
The price of gold in India reached 19,470 rupees (Rs) per ten grams in New Delhi on healthy buying from jewelers ahead of Akshaya Tritiya, the annual festival holiday during which it is considered auspicious to buy gold. In terms of U.S. dollars, India’s new gold price record high is $1,185.54 an ounce.
Silver prices also rose to a record Rs 31,775 per kilogram (US$19.35 an ounce) on increased offtake by the industrial and coin minting sectors.
Despite rising gold prices, the demand for gold in terms of tonnage in India nearly doubled during the first half of 2010, rising 94% to 365 tonnes. In terms of value, gold demand in India rose 122% to over $13 billion during the same period.
India’s gold demand is expected to increase a further 25% during the second half of 2010.
India seems ready to retain its title as world’s largest consumer of gold with demand increasing for several years to come.
But with almost no domestic gold production to speak of, India must import all its gold to feed demand. And investors may be able to leverage increasing Indian gold demand with shares of mineral companies that produce gold for export to India.
In my latest free report for Wealth Daily, I give an overview of India’s currently booming gold market and two gold stocks that could be positioned to profit from the rising demand for gold in India. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: India’s Gold Bull Market
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits