AHMEDABAD: To meet urgent monetary requirements, especially medical emergencies, many Gujaratis prefer to end their gold asset, approx 28 metric tons Sleep Industry players said that since the outbreak of the Covid-19 pandemic, it has been sold by the people in the state.
The World Gold Council (WGC) has estimated that 142 metric tonnes of gold was recycled in India during the pandemic period from April 2020 to December 2021. Out of it, Gujarat Bullion traders, said comfortably, account for at least 20%.
experts suggest that economic recovery Some across sectors and sections of people have not been consistent with gains and the rest have continued to struggle since the pandemic.
Haresh Acharya, Director, India Bullion and Jewelers Association (IBJA), said, “Recoveries in both trade and industry have been skewed since the pandemic. In some sectors, such as IT and e-commerce, the growth has been phenomenally good. However, in some other manufacturing sectors, people’s income is still not fully restored due to business disruptions. Many small traders were forced to close shop or find alternative sources of income. To meet household expenses and emergency expenses, many such people sold gold.”
Industry players also said that many families lost their sole breadwinner during the second wave. “Many people in rural areas were also forced sell gold To meet emergency medical expenses. All these factors led to a significant increase in gold recycling, i.e. selling gold for cash,” Acharya said.
‘Gold recycling up 15%’
According to experts at the World Gold Council (WGC), the pandemic year 2020 saw an increase in gold recycling, but in 2021 the trend saw a decline of at least 15%.
In fact, in the third quarter of the current fiscal, gold recycling across India declined sharply by 22%, WGC data shows. “The pandemic saw a 15% increase in gold recycling in India as people wanted to meet their cash and capital needs. In fact, the jump in gold prices also prompted them to sell gold to book their profits. However, gold recycling has declined significantly in the last two quarters,” said Somasundaram PR, Managing Director, India, WGC.
Interestingly, gold recycling saw a significant increase of 33% in the first quarter of 2021-22 i.e. April to June 2021, when the second wave of Covid-19 hit.
According to Somasundaram, apart from the increase in recycling of gold, there has been a significant increase in offtake for gold loans as well. “Various banks have launched gold loan products keeping in view the rise in demand. People in India hold a sentimental value with gold and many people prefer not to sell it, but to mortgage it against the loan. With better returns due to the rising gold prices, many people also opted for gold loans,” he said.
The World Gold Council (WGC) has estimated that 142 metric tonnes of gold was recycled in India during the pandemic period from April 2020 to December 2021. Out of it, Gujarat Bullion traders, said comfortably, account for at least 20%.
experts suggest that economic recovery Some across sectors and sections of people have not been consistent with gains and the rest have continued to struggle since the pandemic.
Haresh Acharya, Director, India Bullion and Jewelers Association (IBJA), said, “Recoveries in both trade and industry have been skewed since the pandemic. In some sectors, such as IT and e-commerce, the growth has been phenomenally good. However, in some other manufacturing sectors, people’s income is still not fully restored due to business disruptions. Many small traders were forced to close shop or find alternative sources of income. To meet household expenses and emergency expenses, many such people sold gold.”
Industry players also said that many families lost their sole breadwinner during the second wave. “Many people in rural areas were also forced sell gold To meet emergency medical expenses. All these factors led to a significant increase in gold recycling, i.e. selling gold for cash,” Acharya said.
‘Gold recycling up 15%’
According to experts at the World Gold Council (WGC), the pandemic year 2020 saw an increase in gold recycling, but in 2021 the trend saw a decline of at least 15%.
In fact, in the third quarter of the current fiscal, gold recycling across India declined sharply by 22%, WGC data shows. “The pandemic saw a 15% increase in gold recycling in India as people wanted to meet their cash and capital needs. In fact, the jump in gold prices also prompted them to sell gold to book their profits. However, gold recycling has declined significantly in the last two quarters,” said Somasundaram PR, Managing Director, India, WGC.
Interestingly, gold recycling saw a significant increase of 33% in the first quarter of 2021-22 i.e. April to June 2021, when the second wave of Covid-19 hit.
According to Somasundaram, apart from the increase in recycling of gold, there has been a significant increase in offtake for gold loans as well. “Various banks have launched gold loan products keeping in view the rise in demand. People in India hold a sentimental value with gold and many people prefer not to sell it, but to mortgage it against the loan. With better returns due to the rising gold prices, many people also opted for gold loans,” he said.
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