India’s affinity for the yellow metal is both historic and legendary. Indians have always loved gold, not just because of the adornment value, but because it is seen as an instrument of long -term investment.
According to the World Gold Council jewellery demand increased from 208 tons in 1991 to 586 tonnes in 2002, and is presently sold across 300,000 outlets across the country. Besides the surge in demand, another trend discernible since 2000 has been attempts by institutional players to tap into this demand. According to the World Gold Council, Canada-based Scotia Mocatta has trebled the size of its team in India, while HSBC has expanded its bullion team.
Key highlights:
- India is the world’s largest consumer of gold jewellery
- India contributes about 20% to the global demand for physical gold
- Roughly 30% of gold jewellery fabrication is from recycled pieces
- India is typically also the largest purchaser of coins and bars for investment
- At just over one gramme of demand per thousand dollars of GDP, India stands third in the world, behind only the UAE and Bahrain
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