- Reduced demand for cash
- Below 30 percent
- Investments are on the rise
According to the World Gold Council WGC report, gold demand was 123.9 tonnes in the July-September quarter last year. During the same quarter of the current year, the demand for cash stood at 86 tonnes. Factors such as the impact of the corona virus and the skyrocketing gold price are the main reasons for the fall in demand.
Jewelery demand also fell by a combined 48 per cent in the last quarter. Recorded as 52 tons. In terms of value, gold jewelery demand fell by 29 per cent to Rs 24,100 crore. However, demand for gold coins, gold bars and ETFs has increased.
Investment in gold has also increased in the last quarter. Gold investments rose 52 per cent to 33.8 tonnes. In terms of value, gold investments rose by Rs 15,140 crore. The same trend is running not only in the domestic market but also in the international market.
On an annual basis, gold demand fell by 19 per cent to 892 tonnes in the July-September quarter. If the same trend continues in the coming days, another worst record is likely to be set. Gold demand in India is expected to fall to a 25-year low this year. Gold demand in the country so far this year is 252 tonnes. Demand was 496 tonnes during the same period last year.