Download now: Gold and Silver Mining Stocks

Indian Gold Demand to Fall in 2012

First and Second Quarter Demand Slump

Written by Swagato Chakravorty
Posted November 30, 2012 at 5:53PM

According to the World Gold Council, India will see its demand for gold drop by almost 19 percent in 2012 from last year.

The drop will primarily be because of decreased consumption in the first two quarters of the year.

Back in 2011, demand for gold was around 986 tons. By the end of this year, that figure is likely to be revised to 800 tons.

From MoneyControl:

"During the first two quarters of this year, the demand for gold was low because of jewellers strike due to custom duty, weak monsoon, among other factors," said [World Gold Council Director Investment, Amresh] Acharya here.

The festival season, which in India comes toward the end of the year, did increase demand for gold, but demand over the first three quarters was just 600 tons compared to 800 tons for the same period in 2011. There was a national surge in demand between 2006 and 2011—up to 39 percent.

From 710 tons in 2006, demand went to 986 tons in 2011. India and China account for nearly 50 percent of the world’s gold demand.

Despite a global supply constraint, the Indian overall consumption of gold is expected to grow at a healthy rate. From $420 billion in 2006, consumption is expected to increase to $1.73 trillion by 2025.

Related Articles

The Gold/Platinum Ratio
Platinum jewelry is expected to make up to 25%-30% of total Indian jewelry sales in 2012. This comes in a market in which total jewelry sales in India are growing about 12% a year.
Indian Gold Sales Fall
The upcoming festival season in India could offer promise for depressed gold demand.
Marriage Season Pushes Up Gold in India
Gold-buying has pushed prices to a record high as the marriage season approaches in India...

What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
China's World Domination
And Why it's Not Going to Happen
Should Greece Pay Its Debt?
The Case for a Greek Default
Gold's Early Warning
Deflation May Be Coming
There's No Escaping Austrian Economics
Fed Bubble is Popping
More Secret Bank Bailouts Coming
The Best Reason to Buy Silver
A Long-term Outlook for Silver
China's World Domination
And Why it's Not Going to Happen
Legal Marijuana Investing
The Best Marijuana Stock for 2015 is...
Gold's Early Warning
Deflation May Be Coming
Marijuana Investing is Ethical Investing
The #1 Reason to Invest in Marijuana Stocks