The Hindu : Andhra Pradesh / Hyderabad News : Gold gleams even on meltdown

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Wednesday, Nov 26, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Gold gleams even on meltdown

R. Ravikanth Reddy

New jewellery outlets open in capital, no dearth of buyers

PHOTO: Satish. H

Eternal temptation: The recently opened jewellery outlet in Hyderabad has already turned a customer’s paradise. -

HYDERABAD: Gold glitters and the glow is spreading fast and dense even in this recession time dispersing the myth that the demand for yellow metal will melt.

Braving the crash of stock markets, drop in real estate activity and the fear of pink slips in the IT sector, new jewellery shops are opening in the city sending a clear signal that there is no dearth of buyers. In the span of two days, the Somajiguda circle saw the inauguration of Sree Vasundhara Jewellers and GRT Jewellers, undertaken in a grand style with the former bringing in a Telugu heroine as the chief guest.

“Buyers continue to throng and there is no indication of recession on them,” says Suresh, owner of Sree Vasundhara Jewellers. He argues that the recession has in fact helped the jewellery sector, as people want to invest more in gold and jewellery that rarely lose sheen. “Gold is a part of Indian psyche,” adds G.R. Ananthapadmanabhan, Managing Director, GRT Jewellers. “Indians have always considered gold as safe investment in the wake of economic recession.”

Jewellers say investors turned to stock market and real estate in the last two years attracted by massive and quick returns. But again, there was never a dull moment for the industry since the good returns were again spent on increasing their gold and jewellery stock. Mr. Suresh says gold is not only seen as an investment option but there is a lot of sentimental value attached to it. “Gifting gold is a part of the Indian custom. More the jewellery better the status in society is the feeling ,” he says.

‘No ups or downs’

Radhika Reddy, a customer at the GRT too agreed, “Buying gold cannot be linked with economics ups and downs. We may buy less when there is less cash flow. But women prefer to add new designs and latest models to their collection.”

Somajiguda has emerged as the hotspot as it is dotted with jewellery shops of all big brands of the country. Now every second building in Somajiguda houses a jewellery outlet. Earlier, Abids was the destination for many and a few preferred Charminar area. Emergence of Madhapur as the money spinning centre and growth of Banjara Hills where the affluent live and their connectivity to Somajiguda has brought big names to the area, feel the jewellers.

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