The recent rise in dollar-denominated gold prices has impacted the price of gold in India. Gold with a purity of 99.9% increased 150 rupees, amounting to 23,270 rupees (14,660 rubles) per 10 grams. Investors in India are looking for new price increases because they are concerned about the impasse in U.S. debt and see gold as a safe haven for their savings.
Asian investors have lost confidence amid fears that the deep eurozone debt crisis could hit Italy, the eurozone’s third-largest economy.
The price of silver in India has increased 1,000 rupees to 57,500 rupees (36,225 rubles) per kg. Strong industrial demand was the main driver of silver prices. Many Hindus traditionally make gold or silver gifts to their families and friends during the Diwali festival, the Hindu “festival of lights” that is celebrated in October. Regional jewelry companies have already started stocking up on gold and silver jewelry for this celebration.
The growing demand for silver bars and other 999 fine dishes has marked a new trend in India. Regional traders of precious metals began to sell silver certificates, but not the paper equivalent to silver, but made of silver. These silver banknotes are very popular among the fast growing middle class in the country. Demand for silver notes, very similar to the country’s official currency, the rupee, is growing very fast. The denomination of each silver note reflects the exact weight of the silver. A 10 rupee silver note equals 10 grams of silver. Due to the growing demand for this product, sellers are already offering silver banknotes in denominations of 50, 500 or even 1000 rupees.