Sachin Jain, the Regional Manager of India for the World Gold Council, said that the country’s gold demand this year will top 750 tons. Gold demand in the country will reach 761 tons by 2023.
“It is noteworthy that gold is already trading at a premium, which indicates increase of interest in it. We have the view that the fourth quarter, during which there are various holidays and festivals in India, could become one of the highest demand quarters for gold in the history of Indian market. Total projection for India’s gold demand lies within the vicinity of 750 tons; we expect increment to be roughly 750 tons.
In Q2 2024 (April-June), as stated by a recent World Gold Council report, global gold demand plunged by almost five percent from previous year same quarter figure of 158.1 metric tones to 149.7 tonnes. On the other hand, total first half demand for this year (January-June) was just about up 1.5% totaling 288.7 metric tons as against 284.4 metric tones in H1-2023.
In April-June’24, volume wise consumer sales value increased by around 14 percent growth from Rs 93,850 as compared with that of worth Rs 8,250 billion sold during the second quarter of F.Y.2013-14,” Mr Jain said.
“Due to increase in quarterly average price per ten grams of imported/ LME-based 995-fine gold bars/ primarygold excluding import duty and excise duty from Rs 52,191 during Q2-13 to Rs 62,700 during Q2-14 mainly contributed it. Additionally, inflows into investment segment featuring coins and bars also gained more ground. It went up by y-o-y (year-on-year) basis approximately 46% in 2Q2014,” he added.
On Tuesday, the Indian gold industry announced that it was setting up the Indian Association of Gold Excellence and Standards (IAGES), which is a self-regulatory body (SRO) for the domestic gold industry. It has similar groups like India Bullion & Jewellers Association, All India Gems & Jewellery Council and Gem & Jewellery Export Promotion Council backing it under the aegis of World Gold Council.
“First SRO in gold industry across globe. We are looking forward to bring all stakeholders of yellow metal value chain such as manufacturers, retailers, refiners and dealers together” Jain added.
IAGES is aimed at increasing consumer awareness about Indian gold business; by making them adopt fair and transparent practices within their operations; by ensuring that regulatory compliance is adhered to; by coming up with a code of conduct within this sub-sector and lastly by introducing an open system audit framework among other industry values of trust according to WGC.
