European hunger triggers gold shortages in India

India is likely to face gold shortages in the near future with more people buying the yellow metal after the global meltdown, in Europe, experts said on Wednesday.

“With gold being seen as a lucrative investment option in the European market, back home, the yellow metal will face temporary shortage,” Mineral and Metals Trading Corporation (MMTC) Chief General Manager Asheesh Majumdar said. Europe is unable to supply gold to India because investors there have started investing in gold, he said.

Majumdar was in Goa to announce the second edition of MMTC's gold exhibition, which last year saw sales of about Rs 1 crore a day, during the four-day show here.

“The sale of gold shot up nearly 15 per cent in India. People have learnt that instead of investing in the stock market, which has beenvolatile, gold offers them steady and assured returns,” he added.

Meanwhile, Gitanjali Gems, co-hosts of the exhibition, announced a tie-up with MMTC for setting up jewellery stores across the country, its CEO Shekhar Wadke told reporters.

“We have already signed a memorandum of understanding with MMTC,” he said.