Demand of gold grew by 9.1%

ANIMESH SRIVASTAVA 06/02/2018 14:04:31

Demand of gold grew by 9.1%- Newstimes News

New Delhi, Feb 6: The demand of gold in 2017 grew by 9.1%. The demand in 2017 was 727 tonne as compared to 666.1 tonne in 2016, according to a report issued by World Gold Council (WGC).

   Rationale for higher demand

The WGC reported that the demand was mainly driven by jewellery which grew as stabilisation of GST, good performance of stock market, growth in the GDP helped the economy grow and improved the consumer sentiment, as the effect of demonetisation is finally wearing off.

The government’s decision to remove anti-money laundering regulation, the Prevention of Money Laundering Act (PMLA) also helped to boost the demand.

The growth was mainly driven by jewellery demand in 2017, which was up by 12 per cent at 562.7 tonne compared to 504.5 tonne in 2016.

In value terms jewellery demand was up 9 per cent at Rs 1,48,100 crore, from Rs 1,36,290 crore in 2016.

   Estimating the future demand

Union Budget 2018 confirmed various positives steps for the creation of a gold exchange and development of a comprehensive policy. The demand for 2018 is estimated to get stabilised at 700-800 tonne.

Total gold recycled in India was 88.4 tonnes compared to 79.5 tonnes in 2016 and total gold recycled in the last quarter of 2017 was 17.6 tonnes compared to 16 tonnes in the same period of 2016.

"The growth percentage of coins is expected to be the fastest in India in the next two years.'' said Somasundaram PR, WGC Managing Director, India.

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