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May 2018
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Jewellery demand in India (The Total Investment & Insurance
Solutions)
Demand
for gold in India for January-March quarter (first quarter) of 2018 was down by
12 per cent at 115.6 tonne compared to overall Q1 demand for 2017 due to rising
gold prices, exaggerated by a weakening rupee, a World Gold Council statement
said here on Thursday. The Total
Investment & Insurance Solutions
Total
Jewellery demand in India for Q1 2018 was down by 12 per cent at 87.7 tonne as
compared to Q1 2017 (99.2 tonne).
"Local
gold price rises led to the second weakest quarter for jewellery demand in
almost 10 years. After the strongest Q4 on record in 2017, Indian jewellery
demand saw a sharp downturn in Q1 2018, falling 12 per cent year-on-year to
87.7 tonnes," said Somasundaram PR, Managing Director, India, World Gold
Council.
"A
substantial drop in the number of auspicious wedding days during the period
compared with Q1 2017, could be a factor for muted demand as consumers made
less wedding-related purchases. Imports were also down 50 per cent
year-on-year, in anticipation of an import duty cut in the Union Budget that
did not materialise," he added. The
Total Investment & Insurance Solutions
India's
Q1 2018 gold demand value was Rs 31,800 crore, a fall of 8 per cent in
comparison with Q1 2017 (Rs 34,440 crore).
Total
Investment demand for Q1 2018 was down by 13 per cent at 27.9 tonne in
comparison with Q1 2017 (32 tonne). Total gold recycled in India in Q1 2018 was
14.1 tonne, a drop of 3 per cent compared to 14.5 tonne in Q1 2017.
However,
Somasundaram said: "The positive sentiment following the announcement in
the Union Budget about an impending gold policy to make gold an asset class
will boost the industry momentum to get more organised and transparent and
build a strong case for a central gold body under the gold policy." The Total Investment & Insurance
Solutions
He said
trade activity resumed positively during Akshaya Tritiya demonstrating the
resilience of the industry. The Total
Investment & Insurance Solutions
"Policy
focus on doubling farm income and ease of business under GST augur well for the
gold industry in 2018 and the medium term. New ways of buying gold through
digital platforms are catching up quickly; this will not just promote ease of
savings but bring about a mindset change, thereby enhancing acceptability of
centrally vaulted gold - which underpins any attempt to mainstream gold
including Gold Monetisation Scheme," he added.
According
to World Gold Council, for year 2018, full year gold demand expectations for
India is in the range of 700 - 800 tonne.
Globally,
gold demand had a soft start to 2018, reaching 973 tonne, the lowest first
quarter since 2008. This was largely caused by a fall in investment demand for
gold bars and gold-backed exchange-traded funds, as a subdued gold price
environment hampered demand, the statement said.
"Global
jewellery demand was roughly flat at 488 tonne, down 1 per cent on Q1 2017.
Demand in China was buoyed by holiday demand, and US demand continued to
improve in response to the supportive economic backdrop. In contrast, Indian
consumers were discouraged by rising gold prices, exaggerated by a weakening
rupee, with demand down 12 per cent compared with 2017," it added.The Total Investment & Insurance Solutions
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