As per previous reports from World Gold Council, the prices for yellow metal are likely to go up as the festive season starts in India. The latest reports have pointed out that the demand for Gold in India will rise as the income for various groups has increased. The gold demand may touch US $20 billion by 2010 and by the end of year 2015, it could be well above US $30 billion.

The Associated Chambers of Commerce and Industry of India (Assocham) has reported that the estimated value of Jewelry and Gems market in India will be around US $14 billion for the current financial year. The industry will need more work-force in the years to come. As per estimates 300,000 new employees will be needed every year.

Regarding the trend for Diamond markets, Assocham President Mr. Venugopal N. Dhoot said, "Diamond jewellery consumption is likely to jump to nearly 80 percent in 2010 and over 95 percent between 2010 and 2015."

During the last five years, the demand has gone up by nearly 11 per cent. The major factor for the rise is demand is higher purchasing power of Indians. This growth has been seen despite the huge rise in Gold prices. Indians are not having much of interest in diamonds, while Gold is considered as more safe investment. Also, gold can be easily cashed anytime with less depreciation in value compared to diamonds.

In India, the Gold demand also depends on the season. During wedding season, the demand for Gold is usually higher. In the recent years, there has been a growth in Gold trading as well. More investors have entered Gold markets to make money.