Gold has always glittered in the testing times, be it in the midst of slowing economy, inflation fears, geo-political tensions or weak financial markets, this was the common sentiment echoed by the industry experts at the event.

“Gem and jewellery industry is going through torrid times and gold is a best preferred investment tool in these times. There is a great need to understand and integrate the diversification of gold,” said K Shivaram, VP of World Gold Council.

“This is the first time such event is happening in Chennai and it will be surely a great exposure especially to the jewelers of South India as the market here has predominantly remained conservative so far,” said Chairman of Gold Club of Chennai, Anantha Padmanabhan.

According to one of the World Gold Council’s (WGC) report, released by GFMS early this year, the global jewelry demand has declined by 21% year-on-year in the first quarter of 2008 to 445 tonnes, the lowest quarterly level on record since 1993. The total identifiable first-quarter tonnage demand for gold fell 16% to a five-year low of 701 tonnes.

“Imbalances in the market suggest that sooner or later the gold price will have to fall.  Nevertheless, this is most unlikely to occur in 2008 and potentially not until well into 2009,” said the key speaker at IGC and CEO of a London based precious metals consultancy, GFMS, Paul Walker.

“Continued investor interest will be the principal driver of the continued rally to a high above the $1100 mark in 2008” Walker said.

“Though India is the largest gold consumer, the annual per capita consumption of gold is half of that in the US as the Indians invest mainly in the physical form of gold,” said Keyur Shah, Associate Director, WGC.

While some speakers mentioned about the yellow metal prices, its demand and supply CMD, Gitanjali Group and Chairman of FICCI’s National Gems and Jewellery Committee Mehul Choksi, brought to the notice of the industry about the need of branded jewellery and better hallmarking facilities. He referred to a study done by BIS which said that over 80% of the jewellery sold in India is of lower karatage.