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Decline in gold demand in the past quarterly
Posted on: 09/Nov/2016 3:56:26 PM
In the last quarterly, the need for god in India has declined by 28 percent. The reason for this decline is claimed as the reduction in demand which in turn is due to high price of the metal, lack of enough improvement in the rural market, and so on.
During the same quarterly last year, the demand was 271.1 tons, but now, it is just 195 tons. The reason for such increase in gold demand last year is the reduction in price. Ten grams of gold was priced Rs 25,856, says president of world gold council, P.R. Somasundaram.
Basically, there is 12 percent dip in gold value. The demand was worth Rs 63,660 last year, whereas the same is now Rs 55,970.
P.R. Somasundaram further stated that gold purchase reduces as the price increases. Furthermore, due to reasons including tax for purchase above Rs 2 lakh worth gold, need for submitting PAN card and protests against the same, etc are some of the reasons for this dip in demand. As there is sufficient monsoon rainfall, it is expected that the gold demand will get normalized soon.
The tax imposed on gold is reasonable. Hence, there will be growth in sales of organized companies.
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