People invest in Gold in Kerala

Thiruvananthapuram, Dec 23 (ANI): Amid the global meltdown and economic crisis, people in Kerala are investing in gold renewing their faith in its undiminished value.

The sale of gold in the state is increasing every day. The price of gold also shooting high with more people believing that gold a wiser investment.

According to the Kerala Jewellery Manufacturers Association, the state is turning out to be the most sought after destination in the country for retail jewellery trade.

"Gold is a preferred asset for the consumers at this point. There has been a global meltdown but gold has been able to hold its own. It has been able to arrest the slide and consumers have resorted to buying gold and gold jewellery as opposed to investing on equities and real estates. Gold still gives a fair reasonable return. They feel there is no erosion of wealth when they in gold," said Shivram, vice president of World Goldouncil.

Most families invest in gold mainly for wedding purposes, as gold is considered central to Kerala's marriages.

"Even though the market is going down, the price of gold has increased and probably people are buying it because they think they might be an increase in the price. I want to buy it now so that later on I won't have to look back and say that I should have bought it at that time," said Ayisha, a buyer.

Kerala is one of the major markets for gold in India. By K S Ashik (ANI)