Indian Gold Demand Waning Despite Market Uncertainty

Brian Giesen

Indian Gold Demand Waning Despite Market Uncertainty (Reuters)

With India’s two largest gold-buying festivals in the rear-view mirror, and the expectation that its rupee will continue its decline well into 2014, gold investors have little to look forward to near term. Worse, diving deeper into Indian economic data only confirms this negative outlook will continue for quite some time. As previously noted, we’ve already passed Dhanteras and Diwali — India’s twin gold-buying festivals — yet neither had an impact on gold’s value. Nor did the fact that we’re already hip-deep into India’s wedding season. And with the value of India’s rupee continuing to fall, there’s no real incentive for gold bugs to look to India for profits this year, or the next year.

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Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.