Record High Gold Prices in India Attracts Investors
In India, gold increased to a record high of about $497 per 10 grams following a global surge. This has triggered purchases from investors looking to protect themselves against rising inflation while scaring traditional consumers away from the markets.
In New Delhi's jewelry market of Karol Bagh, the shopkeepers are worried about losing their long-time customers whose numbers have dwindled following a prolonged increase in the price of gold.
[Rakesh Saraf, Gold Society of Delhi]:
"There are more investors in the market and they are buying bullion bars and less of jewelry. Only a compulsive buying is there in the market where there is a marriage in the family and you have to buy."
India is the world's largest consumer of gold, and for centuries, gold has held an allure for Indian women.
It also forms an integral part of an Indian wedding where parents of the bride give their daughter gold jewelry as her dowry and a means of financial security.
But the high prices at the moment are worrying some traditional consumers.
[Swati Malhotra, Jewelry Buyer]:
"They are increasing so high I was thinking that when my son will grow up how will I manage his marriage? So I am investing right now for him."
[Monica Suri, Jewelry Buyer]:
"Right now we are postponing that our budget is not so much that we can buy right now, let us see."
Gold traditionally benefits from a weak dollar, times of political and economic uncertainty, and periods of rising inflation. Prices have doubled since the lows of 2008.