Thursday, November 14th 04:23 PM IST

India Gold demand falls 32% in Q3, 2013 demand to surpass 2012: WGC

# gold  # jewellery  # India gold demand  # Finance Ministry  # import  

However, the strength of Indian demand in the first half of the year means that full year consumer demand is still on track to narrowly exceed the 2012 total. One side effect of this was that while global recycling of gold fell 11% compared to the same quarter in 2012, in India the recycling figure increased more than fivefold to 61t.

MUMBAI (Bullion Street): India's gold demand remains resilient despite the government restrictions on import of the metal imposed to curb current account deficit(CAD). Accoridng the Gold Demand Trends Report for Q3, 2013 released on Thursday, the World Gold council (WGC) said that restricts imposed by the India government on gold imports had substantially supressed demand for the metal, with total gold consumption in India recorded at 148 tons in Q3, compared to 310 tons in Q2 this year.

However, the strength of Indian demand in the first half of the year means that full year consumer demand is still on track to narrowly exceed the 2012 total. One side effect of this was that while global recycling of gold fell 11% compared to the same quarter in 2012, in India the recycling figure increased more than fivefold to 61t.

"The intervention of the Indian government in restricting gold imports to the country is obviously reflected in the official levels of demand this quarter, but this by no means indicates that the appetite for gold in India is waning. We have seen some increases in demand in other countries which have close links with India, some of which may be making its way back to the country through illicit channels, which have reopened in recent quarters following a long period of inactivity," according to Marcus Grubb, Managing Director, Investment at World Gold Council.

Government regulations in India are dampening demand figures. India recorded a 32% decline in consumer demand compared to the same quarter last year. However year to date, demand remains robust, up 19% compared to the first three quarters of 2012, following the surge in demand sparked by two price falls earlier in 2013Central banks continue to be strong buyers of gold, albeit at a slower rate. Q3 2013 was the 11th consecutive quarter of net purchases of goldGold demand and supply statistics for Q3 2013.

Global gold demand
Government regulations in India are dampening demand figures. India recorded a 32% decline in consumer demand compared to the same quarter last year. However year to date, demand remains robust, up 19% compared to the first three quarters of 2012, following the surge in demand sparked by two price falls earlier in 2013Central banks continue to be strong buyers of gold, albeit at a slower rate. Q3 2013 was the 11th consecutive quarter of net purchases of goldGold demand and supply statistics for Q3 2013.

Taking the year as a whole so far, the jewellery, bar and coin sectors are showing year-to-date increases, while technology demand remains robust. ETF investment demand is the notable exception, having weakened this year.

Consumer demand globally - the strength of jewellery and bar and coin demand in 2013 to date can be seen when compared against the first three quarters of previous years. As of the end of Q3 2013, demand stood at 2,896t, 26% higher than the same year-to-date figure in 2012.

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