"There might be a temporary dip in demand because of high prices, but again people may start buying because of investment, inch NK Mathur, chairman and managing director with STC, told reporters on the sidelines of the conference in Kerala.
Local gold prices have gained more than 25% to date this year to peak at Rs 27, 962 per 10 grams upon Friday evening.
Imports in India, the world's largest consumer of the steel, rose 34. 9% in the first half of the year to 553 tonne following a surge of 72% in 2010 to 959 tonnes and a 38% increase in investment demand.
STC hopes to restart its imported coins sales division to profit from rising investment demand, its chairman said.
Mathur, asked if it would purchase coins manufactured by MMTC PAMP, which expects to start its refinery within October, said this was possible.
"We are not averse to buy through MMTC, it is business at the end of the day. If they would like to market and we want to do it, it can work, " stated
Mathur said it was not keen on selling silver coins as they are bulky, adding that silver imports formed "a small portion of its company. "
Mathur expects gold prices to trend upwards in the short-term.
"In the small amount of time it will rise, it will cross the $2, 000 (an ounce) tag, " said Mathur, adding there was an absence of alternatives for expense.
"The dollar is uncertain and even equity markets are uncertain, the just safe place is gold, " he said.
Spot gold on international markets was set because of its biggest one-week rise since late 2008 on Friday after a raft associated with soft economic data battered stock markets, though prices eased from record highs as equity markets and also the euro edged off lows in afternoon trade.
Spot gold was up 1. 7% from $1, 853. 89 an ounce. It is on track for its biggest one-month rise in nearly 12 years in August and it is up 31% so far this year.