India’s insatiable appetite for gold was once again evident in the figures reported by World Gold Council’s (WGC) quarterly report, which shows that gold demand in India rose 71 per cent to 310 tonnes in the second quarter of calendar 2013.
Of the total, Jewellery demand rose 51 per cent in volume terms to 188 tonnes while investment demand (investment in bars and coins) was up 116 per cent at 122 tonnes.
In value terms, demand rose 55 per cent to Rs. 78,681 crore with jewellery demand up 37 per cent at Rs. 47,716.2 crore and investment demand rising 96 per cent to Rs. 30,964.8 crore.
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In a statement, Somasundaram PR, Managing Director, India, World Gold Council, said, “The strength of second quarter gold demand again demonstrated how Indians remain committed to gold. The fall in gold price last April resulted in an increase in demand for jewellery of more than 50 per cent of last year while bar and coin demand doubled. ‘’
He acknowledged that the recent measures put in place by the government to tackle the current account deficit (CAD) and restrict gold imports could impact demand. “However, in the current quarter, demand in India has slowed down considerably ,’’ Mr. Somasundaram said.
Global demand for gold fell 12 per cent to 856 tonnes during the second quarter of calendar 2013, the report said, adding that in value terms it was down 23 per cent at $ 39 billion. The average gold price for the quarter was $ 1,415 per ounce, down 12 per cent.
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In a statement, Marcus Grubb, Managing Director, Investment, at the World Gold Council, said “The second quarter continued the trend that we saw in the first, of a rebalancing in the market, as gold coming onto the market from ETF sales met with a wave of demand for bars and coins, as well as jewellery. This surge in bar and coin investment was a common theme in key markets around the world, and has been particularly prominent in the world’s biggest gold markets, India and China.’’