Indian jeweler to buy gold mines

(OroyFinanzas.com) – India's largest jewelry manufacturer, Rajesh Exports, wants to invest in gold mines. This is what its owner, Rajesh Mehta, told local journalists during his visit to Australia. And thus “guarantee a safe, reliable and permanent supply of gold for our company”. Mehta also confirmed that he had already reached an agreement with the investment bank to identify the best assets. The disbursement could reach $700 million.

“We would also like to invest in the retail jewelry sector in Australia,” he said. “That is, extracting the gold from here, processing it in India and bringing it back to the Australian jewelry market.”

The new strategy of Rajesh Exports is not creating a trend in the sector, but it is true that such a thing has never happened in the gold market. An end user, mine owner. In addition, the volume of exports managed by Rajesh must be taken into account. The company has considerable influence in terms of demand for gold. It currently consumes around 140 tonnes of the metal per year, which is equivalent to around 15% of India's total annual gold import volume.

Similar movements – end users, mine owners – happened in other metals markets – like copper, platinum or coal – but not in the gold market until the emergence of Rajesh Exports . It will be interesting to see who participates in the project as investors and what effect this new strategy will have. We will be attentive.

Source: Oil prices

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