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© Renee V

The strengthening of precious metal prices in the Indian jewelry market, is not affecting demand negatively. This is an interesting trend in the Indian jewelry market. More interestingly, a great transition is being witnessed in the Indian jewelry market with customers purchasing more platinum ornaments instead of yellow gold ornaments.

Experts predict that the sales of platinum ornaments will increase by 40% in the Indian jewelry market this year with the younger demographic population up to 35 years investing largely in platinum half sets, engagement and wedding rings. They suspect that the surge in the demand for expensive ornaments in the Indian jewelry market is a result of strengthening of the Indian economy and the successful agricultural segment.

© Sanath's

Tanishq of Titan Industries Ltd will invest Rs 150-200 Crores (about 35 million USD) in setting up fifteen gold jewelery retail showrooms in India by March 2012. CK Venkataraman, COO, Jewelery Division, Titan Industries Ltd, says that the area of these gold jewelery showrooms will range from 3,000 sq-ft to 20,000 sq-ft with few having an area of more than 8,000 sq-ft each. The largest will be a 20,000 sq-ft gold jewelery showroom in Mumbai, he asserts.

The new gold jewelery showrooms will be equipped with unique facilities enabling customers to know what they are investing in and serving as a platform to build customer trust further in the Tanishq brand. The new Chennai based showroom, for instance, offers the Karat-meter, a device to measure the purity of gold jewelery bought by customers.

Tanishq that launched 18K gold jewelery in India in 1995, advertising it as an 'international standard,' is India's leading brand today. Success came to it after Tanishq started offering hallmarked 22K gold jewelery to the Indian women.

© LoulasBoutique

The World Gold Council has released its market analysis for 2010, and one of the conclusions in this report is that demand for gold jewelry in India and China contributed to a strong recovery in that sector, with annual demand up 17% from 2009. Consumers across Asia drove gold jewelry demand, and the Council expects that demand from China is expected to continue growing rapidly during 2011 as economic growth there remains strong.

Demand from India as well is likely to remain resilient. Overall gold demand hit a ten-year high last year, jumping 38% to a new record value. This is due in part to a structural shift in central bank policy towards gold. In 2010, central banks around the world become net buyers of gold for the first time in 21 years, and this has removed a significant source of supply to the market.