The country’s gold demand declined by more than 35 per cent to 446.4 tonnes in the last year ie 2020. This information is given in a report of the World Gold Council (WGC).
On the WGC’s 2020 gold demand stance, the report said the demand for gold declined amid the enforced lockdown due to the corona virus and the price of precious metals reaching their all-time high.
Gold demand expected to improve in 2021
However, at the same time, the report said that the situation is normalizing and the industry has been strengthened by continuous reforms. Therefore, the demand for gold is expected to improve in 2021 this year. The report said that India’s gold demand declined by 35.34 per cent to 446.4 tonnes in 2020 from 690.4 tonnes in 2019. According to WGC data, the demand for gold declined by 14 per cent in value last year and came down to Rs 1,88,280 crore. In 2019, gold demand by value was Rs 2,17,770 crore.
The total demand for jewelery declined by 42 per cent to 315.9 tonnes.
Meanwhile, the total demand for jewelery declined by 42 per cent to 315.9 tonnes in 2020, from 544.6 tonnes in 2019. By value, it declined by 22.42 per cent to Rs 1,33,260 crore from Rs 1,71,790 crore in the previous year. The demand for jewelery was affected due to enforced curbs due to Kovid-19. The report said that the country’s net imports of gold declined by 47 per cent to 344.2 tonnes in 2020 from 646.8 tonnes in 2019.
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WGC Managing Director, Bharat Somasundaram PR said that gold imports had increased by 19 per cent year-on-year in the fourth quarter of last year due to the easing of the lockdown and efforts to normalize the situation in a phased manner. This shows the positive impact of suppressed demand. The report said that consumer sentiment improved in the fourth quarter and the decline in gold demand was reduced to just four per cent. Gold demand in the fourth quarter stood at 186.2 tonnes, compared to 194.3 tonnes in the same quarter last year.
“The demand for jewelery was 137.3 tonnes in the fourth quarter of 2020 due to the festive and wedding-interest season,” Somasundaram told PTI. This was the strongest quarter for the whole year. There was a good improvement in investment demand and it was up 8 per cent to 48.9 tonnes.