According to the World Gold Council, gold imports by India last year hit the highest level in a decade as jewelry sales nearly doubled, with the demand outlook remaining bright.
Demand resumed after two bleak years as Indians once again entered jewelry stores in 2021 as pandemic fears eased. Weddings and celebrations hit full swing in the three months to December, according to council figures, doubling the full year’s imports to about 925 tonnes, the highest since 2011.
“From 2022, you will see demand setting a new normal towards 800-850 tonnes,” said PR Somasundaram, India’s regional chief executive at the London-based group, compared to an average of 667 tonnes over five years by 2020. , He added that the next few years will be crucial as policy reforms and technology will convert gold into a more transparent mainstream asset class.
The data shows that the aggregate demand for jewellery, coins and bars increased by 79% to 797 tonnes last year. He added that global concerns over COVID-19 and its variants, inflation, interest rates and geopolitical developments will continue to be factors to watch in 2022.
Demand resumed after two bleak years as Indians once again entered jewelry stores in 2021 as pandemic fears eased. Weddings and celebrations hit full swing in the three months to December, according to council figures, doubling the full year’s imports to about 925 tonnes, the highest since 2011.
“From 2022, you will see demand setting a new normal towards 800-850 tonnes,” said PR Somasundaram, India’s regional chief executive at the London-based group, compared to an average of 667 tonnes over five years by 2020. , He added that the next few years will be crucial as policy reforms and technology will convert gold into a more transparent mainstream asset class.
The data shows that the aggregate demand for jewellery, coins and bars increased by 79% to 797 tonnes last year. He added that global concerns over COVID-19 and its variants, inflation, interest rates and geopolitical developments will continue to be factors to watch in 2022.
Key figures from WGC’s Quarterly Demand Trends Report:
* According to Somasundaram, India’s gold demand reached a record high of around 344 tonnes in the October-December festival quarter.
Jewelery sales nearly doubled to 265 tonnes and investment purchases increased 61% to nearly 79 tonnes
* Imports rose 25% to 208.4 tonnes in the quarter
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