Gold in the Indian economy
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Gold in the Indian economy
India's gold demand up 13% at 975 tonnes in 2013: Report
PTI | Feb 18, 2014
2012
Gold demand in the country was 864 tonnes according to data given in WGC 'Gold Demand Trends 2013' report.
2013
India's gold demand remained buoyant and rose by 13% to 975 tonnes compared to 2012, despite government putting in several restrictions to curb imports, according to a World Gold Council report.
"Demand in the second half was lower due to the effect of the supply curbs introduced in that period, but, equally, it was due to households having met a large part of their annual gold requirements in the first half, using the price drop in April as a buying opportunity," WGC Managing Director India Somasundaram P R told PTI.
The total jewellery demand in the country in 2013 was up by 11% at 612.7 tonne valued at Rs 1,61,750.6 crore compared to 552 tonne valued at Rs 1,58,359.1 crore in 2012.
The total investment demand for 2013, was up by 16% at 362.1 tonnes from 312.2 tonnes in 2012.
In value terms, gold investment demand rose by six% at Rs 95,460.8 crore against Rs 90,184.6 crore in 2012.
Recycled gold, however, declined by 10.79% to 100.8 tonnes in 2013, compared to 113 tonnes in 2012.
The latter half of 2013, Somasundaram said, has seen intense grey market activity.
Gold smuggling
Estimates of the extent of gold smuggling in India vary widely, market analysts have suggested it could have added between 20-30 tonnes per month, the report pointed out.
"However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of between 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range," he said.
"In 2014, market estimation of gold demand is between 900-1,000 tonnes," he added.
