India’s gold demand will touch upward of 750 tonne, says WGC CEO
CHENNAI: India’s gold demand will touch an upward of 750 tonne in the current calendar year (CY2024), said Sachin Jain, regional CEO, India, World Gold Council (WGC). In CY2023, the gold demand in the country stood at 761 tonne.
“Gold is already selling at a premium and it is a clear reflection of the increase in demand for gold. We think Q4, which is the festive season, will be one of strongest quarters for gold demand in the country ever.The overall estimates for gold demand in CY2024 is 750 tonne. We think it will be close to about the upwards side of 750 tonne,” he told TOI.
Gold demand in Q2 (April-June) of CY2024 plunged to 149.7 tonne, a drop by 5% more than 158.1 tonne over the same quarter last year, according to a WGC report. However, the collective demand during H1 (Jan-June) this year marginally increased by 1.5% at 288.7 tonne when compared with H1 CY2023 at 284.4 tonne.
Jain said the consumption value of gold sold between Q2 of two years rose by 14% from Rs 82,500 crore in Q2 CY2023 to Rs 93,850 in the April-June of CY2024.
“This was due to the average quarterly price of 24K gold without customs duty and GST jumped from Rs 52,191 in Q2 CY2023 to Rs 62,700 during Q2 CY2024. We also saw the investment segment comprising bars and coins boomed in this year’s second quarter, which rose by 46% Y-o-Y,” he added.
Meanwhile, the Indian gold industry on Tuesday announced the formation of the Indian Association for Gold Excellence and Standards (IAGES), a self-regulatory organisation (SRO) for the gold industry. Supported by WGC, it comprises associations such as the Indian Bullion and Jewellers Association, All India Gems and Jewellery Council of India and Gem and Jewellery Export Promotion Council.
“This is the first SRO in the gold business in the world. We are making an attempt to bring the entire value chain of gold, including the manufacturers, retailers, gold refiners and dealers together,” Jain said.
In a statement, WGC said IAGES would aim at increasing consumers’ trust in the Indian gold industry through encouraging adoption of fair, transparent and sustainable practices, regulatory compliance, establishing code of conduct and introducing an audit framework for the industry across the entire industry value chain.
“Gold is already selling at a premium and it is a clear reflection of the increase in demand for gold. We think Q4, which is the festive season, will be one of strongest quarters for gold demand in the country ever.The overall estimates for gold demand in CY2024 is 750 tonne. We think it will be close to about the upwards side of 750 tonne,” he told TOI.
Gold demand in Q2 (April-June) of CY2024 plunged to 149.7 tonne, a drop by 5% more than 158.1 tonne over the same quarter last year, according to a WGC report. However, the collective demand during H1 (Jan-June) this year marginally increased by 1.5% at 288.7 tonne when compared with H1 CY2023 at 284.4 tonne.
Jain said the consumption value of gold sold between Q2 of two years rose by 14% from Rs 82,500 crore in Q2 CY2023 to Rs 93,850 in the April-June of CY2024.
“This was due to the average quarterly price of 24K gold without customs duty and GST jumped from Rs 52,191 in Q2 CY2023 to Rs 62,700 during Q2 CY2024. We also saw the investment segment comprising bars and coins boomed in this year’s second quarter, which rose by 46% Y-o-Y,” he added.
Meanwhile, the Indian gold industry on Tuesday announced the formation of the Indian Association for Gold Excellence and Standards (IAGES), a self-regulatory organisation (SRO) for the gold industry. Supported by WGC, it comprises associations such as the Indian Bullion and Jewellers Association, All India Gems and Jewellery Council of India and Gem and Jewellery Export Promotion Council.
“This is the first SRO in the gold business in the world. We are making an attempt to bring the entire value chain of gold, including the manufacturers, retailers, gold refiners and dealers together,” Jain said.
In a statement, WGC said IAGES would aim at increasing consumers’ trust in the Indian gold industry through encouraging adoption of fair, transparent and sustainable practices, regulatory compliance, establishing code of conduct and introducing an audit framework for the industry across the entire industry value chain.
