Shares of the Indian company Rajesh Exports, which produces gold and diamond jewelry, rose 17% after the company announced plans to start a gold investment business. According to research by some analysts, the gold investment business is relatively safe and highly profitable. Companies such as Muthoot Finance and Manappuram Finance are already engaged in business in this segment and have shown steady growth over the past few years.
Rajesh Mehta, chairman of Rajesh Exports, said: "There is a very strong link between our current business and the gold investment business, and we understand how the gold investment market works and this will allow us to increase our profits."
The company, engaged in retail sales of jewelry through its brand Subh Jewelers, is using its chain of stores to promote a new direction for the company's gold investment.