X

This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.



Please create a password or click to receive a login link.


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

Gold Imports by India Hit Decade-High as Jewellery Dema...

Business Maverick

Business Maverick

Gold Imports by India Hit Decade-High as Jewellery Demand Doubles

Shoppers pass an imitation gold jewelry store at Zaveri Bazaar during the festival of Dhanteras in Mumbai, India, on Tuesday, Nov. 2, 2021. Indians flocked to jewelry stores on the biggest gold-buying day of the year, with a bumper sales period for precious metals that culminates in the festival of Diwali expected for the first time since the pandemic began.
By Bloomberg
28 Jan 2022 0

Gold imports by India accelerated to the highest level in a decade last year as jewelry sales almost doubled, with the demand outlook remaining bright, according to the World Gold Council.

Demand revived after two bleak years as Indians once again flocked to jewelry stores in 2021 as fears of the pandemic eased. Weddings and celebrations picked up in full swing in the three months through December, more than doubling full-year imports to about 925 tons, the highest since 2011, according to the council data.

“Starting 2022, you will see demand setting up a new normal toward 800-850 tons,” compared with an average of 667 tons in the five years through 2020, said P.R. Somasundaram, regional chief executive officer for India at the London-based group. The next few years will be key as policy reforms and technology let gold evolve into a more transparent mainstream asset class, he said.

 

Decade High

Total demand for jewelry, coins and bars jumped 79% to 797 tons last year, the data showed. Covid-19 and its variants, global concerns on inflation, interest rates and geo-political developments will remain factors to watch in 2022, he said.

Key numbers from WGC’s quarterly demand trends report:
  • India’s gold demand in the October-December festival quarter rose to a record high of about 344 tons, according to Somasundaram
    • Jewelry sales nearly doubled to 265 tons and investment purchases gained 61% to about 79 tons
  • Imports climbed 25% to 208.4 tons in the quarter
Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted