Demand for gold in India rose 79 per cent to 650.4 tonnes during the period January-September 2010 as compared to 363 tonnes in the corresponding period in 2009 clearly indicating that there has been a robust demand. According to figures in ?Gold Demand Trends' released by the World Gold Council (WGC), in value terms, India's gold demand grew to Rs. 113,302 crore from Rs.53,196 crore, an increase of 113 per cent.
India has been the largest contributor to the growth in jewellery demand in the third quarter of 2010 with a rise of 36 per cent to 184.5 tonnes from 135.2 tonnes a year earlier. In rupee terms, demand reached Rs.33,800 crore, 67 per cent higher than in the same period of 2009. The total gold demand in Q3 2010 is 229.6 tonne valued at Rs.41,823 crore.
India's Q3 net retail investment was up to 45.1 tonnes an increase of one per cent from Q3 2009 and Rs. 8,023 crore, an increase of 30 per cent in value terms. This increase has reflected the growing expectation amongst retail investors of still higher prices to come. Existing investors generally tended to cling on to their holdings in anticipation of greater long- term returns, the report said.
The total gold jewellery demand in India remained robust in the first nine months of 2010.
