There has been a shift in demand from
jewellery (ornamentation) to coins and bars(investments). Coins cost less compared
to
jewellery(which has additional making charges). Demand for jewellery remains strong in traditional circles though gold-plated jewellery is also becoming popular. but gold-plated jewellery isn't an investment. Right now over 80% of indian demand is for jewellery ; the rest for coins and bars. Investors can also dabble in gold futures, with demat
delivery in commodity exchanges. This is low cost, and physical delivery is at 0.995 purity. Gold futures trading clocked a recent turnover of Rs 4290 crore. More sophisticated investment product will come. One possibility is exchange-traded funds (ETFs) wher gold s theundrelying asset. Investor can trade ETF units with real time quotes. A gold ETF is long over due. Gold ETFs could be launched soon; it's awaiting clearence from the finance minster.