India’s gold demand declined by a staggering 70 per cent in the three months to June, hitting the lowest quarterly figure in 11 years due to the closure of retail shops and factories following the COVID-induced nationwide lockdown during most of the period.
The World Gold Council:
It is the market development organisation for the gold industry.
- Their purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market.
- The World Gold Council’s 26 Members are some of the world’s most forward-thinking gold mining companies. They are headquartered across the world and have mining operations in over 45 countries.
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India specific findings of the report:
- A sharp increase in the price of the metal fuelled the downtrend. Gold prices have risen by 60% since January 2019 and 20% since January 2020; income growth or expectation have not kept pace with this.
- The quarter was defined by lockdowns and high prices, both of which acted in combination to keep India’s gold demand at a record low.
- Demand for jewellery dropped by 74% to 44 tonnes, in an atmosphere of fear and uncertainty where weddings were postponed or just turned out to be uncharacteristically quiet and private.
- Investment demand fared relatively better, with demand dropping lower at 56% to 19.8 tonnes, as gold’s safe-haven attributes and perhaps some price increase anticipation attracted high net worth individuals (HNIs) and investors.
- Total gold recycled was 13.8 tonnes, down by 64% year on year.
- Total gold imports during the quarter was 11.6 tonnes, down by 95% compared with 247.4 tonnes year-on-year.