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9
November 2017
 |
Gold (The Total Investment & Insurance
Solutions)
Demand for gold in India for third
quarter (July-September) 2017 was at 145.9 tonnes down 24 per cent as compared
to overall demand for the corresponding quarter in 2016, a World Gold Council
(WGC) report showed here on Thursday.
In 2016 Q3 the demand was 192.8
tonnes.
"India's gold demand was
down... as the newly introduced Goods & Services Tax (GST) and anti-money
laundering legislation (AML) around jewellery retail transactions deterred gold
buyers," said Somasundaram PR, Managing Director, India, WGC. The Total Investment
& Insurance Solutions
"After three consecutive
quarters of growth, jewellery demand fell by 25 per cent to 115 tonne y-o-y in
Q3 and bar and coin demand fell by 23 per cent to 31 tonne. The drop can be
attributed partly to some advance buying in Q2 (April-June) to pre-empt the
introduction of GST in Q3," he said.
"However, with the industry's
gradual transition to GST proceeding on expected lines, and the removal of AML
legislation, demand during the festive season seems to show clear signs of
recovery in Q4. This is also underpinned by the faster growth in imports ahead
of demand, and price factors in the market," Somasundaram added.
Global gold demand in Q3 2017 was
915 tonnes, a drop of 9 per cent compared with the same period in 2016,
according to the World Gold Council's latest Gold Demand Trends report. This
decline was led by two key factors: a softer quarter in the jewellery sector
and significantly lower inflows into exchange-traded funds (ETFs). The Total Investment
& Insurance Solutions
India's Q3 2017 gold demand value
was Rs 38,540 crore, down by 30 per cent in comparison to Q3 2016 (Rs 55,390
crore).
The report said the total investment
demand for Q3 2017 was down by 23 per cent at 31 tonnes in comparison to Q3
2016 (40.1 tonne).
Total gold recycled in India in Q3
2017 was 26.7 tonne, as compared to 25.7 tonne in Q3 2016. The Total Investment
& Insurance Solutions
In 2017, full year market
expectations of gold demand in India is in the range of 650-750 tonnes. The Total Investment
& Insurance Solutions
"Headwinds for demand continue
though, following various measures since early 2016 to boost transparency, and
therefore we expect full year demand in 2017 to be well below the 5-year
average, our estimate being between 650 to 750 tonnes, the lower end of the
range being more likely," Somasundaram added.The Total Investment
& Insurance Solutions
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