Gold price fall ‘affects real estate in India’

<p>The falling value of gold has a knock-on effect.</p>

Real estate in India has been affected by the fall in gold price, it has been claimed.

The value of the commodity has been sliding throughout 2013 and this has led to the Stamps and Registration Department missing its target for the first two months.

According to a report by the Hindu, a source said the "thawing" of gold prices has had an impact on the number of property transactions taking place in India.

"If the same trend continues, small investors will be favourable to gold than the real estate," the insider was quoted as saying by the news provider.

Gold lost around 25 per cent of its Indian value between September last year and April 2013.

But Venkatesh Babu, former president of the Bangalore Jewellers' Association, noted how the fall in the price of gold has been good for some sectors, such as the jewellery industry.

The latest Gold Investor Index from BullionVault recently revealed that the price of gold has dropped to its lowest level in more than two years.

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