Gold council looks to cash in on Dhanteras

BANGALORE: The World Gold Council (WGC) is planning to extend its success with Akshaya Tritiya to Dhanteras. WGC is looking at introducing the vast gold-consuming market of the South to Dhanteras, a tradition more popular in the north and western states. Dhanteras is associated with the worship of Goddess Lakshmi and marks the onset of Diwali celebrations.

“India is of critical importance to us and we believe that having collaborative marketing initiatives will help boost gold consumption,” said MD and chief marketing officer of London-based WGC Philip Olden.

In the interim, WGC is looking at roping in jewellers for the Dhanteras marketing initiative, said WGC MD (Indian sub-continent) Ajay Mitra.

“Sales during Akshaya Trithiya have been on the rise and have touched 55 tonnes. We are also looking at other festive dates like Pushya Nakashtram to launch our marketing programmes,” said vice-president of WGC, K Shivram.

WGC created a buzz around Akshaya Trithiya and helped to take it national when it was largely observed only in south India. Besides providing for convenience (EMI-linked buying), WGC was able to rope in jewellers overseas (notably in the Gulf) to also participate in these festivities.

The significance of this push can be gauged by the fact that festive-related sales account for a sizeable chunk of bullion buying in India. WGC statistics indicate that for the 12-month period ended June 30, 2007, India's bullion intake stood at 930 tonne, making it the world's biggest consumer.

Mr Olden said, bullion consumption took various forms in India. “It is not just jewellery but even gold coins, commemorative releases and the like which are finding a market in India. A growing middle-class should see gold consumption rise in the country,” he said. Besides India, Mr Olden said, China and Saudi Arabia continued to witness robust double digit growths at 30% and 25% per annum respectively.