Gold may make one last push to $1,500/oz because of Indian Wedding dates in late April & thru May in 2011

After May ends, Gold should see a pullback as the summer lull enters the Gold Metal with Indian weddings not restarting till Late Sept.

In the Hindu Religion perfect dates to get married start in late April and thru May in 2011 in certain parts of India.

* Gold is integral to all Indian wedding ceremonies: purchases relating to Indian weddings typically account for 50% of annual jewellery demand

* With 50% of the Indian population under 25 and approximately 150 million weddings anticipated over the next decade, the World Gold Council estimates that wedding-related purchasing will drive approximately 500 tonnes a year
Link to article

 

India gold up but wedding season stokes demand Published on Wed, Apr 06, 2011 at 17:41 Source : Reuters

Indian gold edged up on Wednesday evening tailing firm overseas markets, but a stronger rupee capped the upside, analysts and traders said.

Demand in physical markets was steady, supported by the ongoing wedding season, they said.

The most-active gold for June delivery on the Multi Commodity Exchange was trading 0.3% higher at Rs 21,225 per 10 grams at 4:07 pm.

"Despite higher prices, the wedding season demand is there in the market," said a dealer with a state-run, bullion-importing bank.

India is in the midst of the wedding season, when parents give gold jewellery to their daughters as part of their trousseau.

International gold prices rallied to record highs against a backdrop of a weaker dollar, ongoing investor worries over inflation and euro zone debt and unrest in the Middle East.

The Indian rupee jumped to a 5-1/2-month high in afternoon trade on Wednesday on the back of the euro's gains against the dollar and rising dollar inflows into equities.

India's demand for gold should be robust in 2011 despite the likelihood of higher prices, pushed by geopolitical tensions, according to the World Gold Council.

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Written By: Bridezilla

IT TAKES two hands to lift the wedding outfits designed by Rimple Narula off the rack.

Her creations - “inspired by the Taj Mahal” - are so heavily encrusted with Austrian crystals and semi-precious gems from Rajasthan they weigh more than 44 lbs.

But she has no sympathy for the brides that wear them. “Oh, the weight doesn’t matter,” Ms Narula says. “An Indian bride just sits there for most of the wedding anyway - she doesn’t have to roam around much.”

A typical price tag for one of these bridal “lehengas” is $15,000 but the designer has sold outfits for $16,000.

“It’s quite common for Indian weddings to have a clothing budget of $75,000 including the outfits for mothers and sisters,” she says.

Ms Narula was showcasing her outfits at the Bridal Asia show held last week in the palatial Ashok Hotel in New Delhi. Touted as “the most exclusive wedding extravaganza on the subcontinent”, the show coincides with the advent of India’s wedding season, which runs from October to February.

At this time every year, soon-to-be brides and grooms, along with their parents, take family savings carefully accumulated over many years and go on one of the world’s great shopping sprees. Tonnes of jewellery and kilometres of fabric are bought.

The Indian wedding industry is estimated to be worth $52 billion annually and has been growing at about 20% a year. The global financial crisis is not expected to take much of a toll because most families have already set aside the money. Rather, after several boom years for the Indian economy, this wedding season promises to be especially big.

New Delhi is the hub of north India’s wedding industry thanks to its size and wealth. It is also near several wealthy provinces including Punjab, a region with a lavish wedding culture.