Jewellery trade thrives in Rajasthan despite rising bullion prices

Jaipur, Aug.8 (ANI): Despite a hike in excise duty on gold and silver, the trade of gems and jewellery continues to flourish in Rajasthan.

This was evident in the participation of over 300 jewellers in an exhibition of exclusive and trendy ornaments.

The four-day-long exhibition evoked an overwhelming response from both traders and prospective buyers.

Ritesh Bothra, a participant, observed the impact of global recession has reduced in recent days, while the purchasing power of Indians too has gone up.

"Today, there is less impact of 2008 global recession on the Indian markets. The purchasing power of the people has increased. They are earning good. The cash flow in international market is also satisfactory. So, the growth of the national market is also going well," said Bothra.

Different kinds of gold, silver and diamond studded jewellery were displayed.

"We have been successful in selling whatever the diamond related stuffs we produce and we will definitely succeed," said a Mahesh Sawant, a trader in gems and jewels.

Traders are also watching the monsoon forecast for the second half of the June-September season, which is vital for demand of gold among the rural and semi-urban areas of the country.

The slight correction in gold prices on July 25 has brought some relief to gold traders.

The most-active gold for August delivery on the Multi Commodity Exchange was 0.26 percent higher at 29,684 rupees ($ 537.80) per 10 grams.

Gold in the past few months has moved largely in tandem with the euro and riskier assets, with a relentless debt crisis in the euro zone chipping away at bullion's safe-haven appeal.

India's gold imports could pick up in the second half of 2012 if record prices ease but annual volumes will still fall about 30 percent after a tax hike, which could crimp demand until 2014 says, the head of Mumbai's Gold Trade Association.

The government wants to cut gold imports to 38 billion dollars in the fiscal year to March 2013, down 38 percent on the year, to help rein in a bulging current account deficit. Imports during April and May were down 6.2 billion dollars. (ANI)