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Dip in gold demand back in 2018
Posted on: 31/Jan/2019 5:32:41 PM
The annual report from the World Gold Council states that there is about 1.40 percent of dip in gold demand, thus bring down to 760.4 tonne back in 2018 the reason being increase in price and a few measures taken by the government. Globally, there is 4 percent increase in consumption, to note.
Lesser number of wedding days or auspicious days, increased volatility, improved transparency of policies put up by the government, etc. are some of the reasons for the same, the council adds.
Back in 2017, the country had 771.2 tonne of gold consumption and this got declined to 760.4 tonne in the past year (2018), as per the WGC annual report.
In the global market, with 4 percent increase in demand, it has reached to 4,345.1 tonne last year. The reason is to be attributed to the central bank during the last 6 months of 2018. The global consumption was 4,159.9 tonne back in 2017.
About 74 percent more gold were purchased by the central banks. This adds to 651.5 tonne that the official gold reserve as of 2018 as compared to the reserve of 374.8 tonne in 2017, the report clarifies.
The gold demand is likely to increase up to 750-850 tonne as the elections are nearing and spending is likely to increase in 2019, says the Managing Director of WCG India, Somasundaram.
Back in 2017, there was 1 percent dip in demand of gold and came down to 598 tonne from the previous 601.9 tonne. As far as the demand for jewellery is concerned, it increased to 5 percent from the pre vious 15.84 lakh crore to later Rs 16.66 lakh in 2017.
In the year 2017, there was dip in overall investment demand by the range 4 percent which came down to 162.4 tonne whereas the same was earlier 169.3 tonne. As far as the values is concerned, there was 2 percent increase and it rose to Rs 45,250 crore from the earlier Rs 44,560 crore.
Somasundaram further adds that there will be possible increase in demand with increase in income. The demand is largely impacted by several measures like the GST, he adds. The industry is however growing into a better organized and better streamlined sector with such government measures, he points.
