Strong gold growth of 29% show investment trend!

 

The value of gold demand during 2024 increased by 22% 

Sachin Jain, Regional CEO, India, World Gold Council said, in 2024, India's total gold demand was 802.8 tonnes in 2024, a 5% increase from 761 tonnes in 2023. This was facilitated by multiple record-high gold prices, a reduction in import duty, investment demand, and purchases related to weddings and festivals. 

The total jewellery demand, in terms of volume, decreased by 2% to 563.4 tonnes in 2024 from 575.8 tonnes in 2023, despite the gold price reaching multiple record highs. This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India's stronger economic growth compared to many other markets. 

Many consumers purchased gold jewellery in late Q3 when the duty cut mitigated much of the recent price increase. Nonetheless, the value of gold demand during 2024 increased by 22%, illustrating the ongoing demand for gold. 

Total gold investment demonstrated strong growth of 29% in 2024 at 239.4 tonnes – the highest since 2013, compared to 185.2 tonnes in 2023, reinforcing gold's status as a safe-haven asset. Similar to other markets, investment demand was supported by the rise in gold prices throughout the year.  

Prices resumed their upward trend after the July duty cut, and a subsequent correction in November attracted investors seeking lower-priced purchases. There was consistent ETF demand throughout the year, and the festival period of Dhanteras and Diwali in October/November stimulated buying in the final quarter. This was further enhanced in major metropolitan cities by e-commerce platforms offering rapid delivery of small gold investment bars and coins.  

The Reserve Bank of India was a significant purchaser in 2024, acquiring 73 tonnes, more than four times its gold purchases of 16 tonnes in 2023. Our outlook for 2025 gold demand is between 700-800 tonnes. It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some level of price stability. Additionally, it is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars. 

India Gold Demand Statistics for 2024 (January - December) and Q4, 2024 (October - December) 

1: Total Demand for gold in India -

Tonnage:

    • For 2024 increased by 5% to 802.8 tonnes, as compared to 761 tonnes in 2023 
    • For Q4 2024 was 265.8 tonnes, which is similar to 266.2 tonnes in Q4 2023

Value:

·         Total gold demand value was Rs 515,390 crores, up by 31% as compared to Rs 392,000 crores in 2023

·         India’s Q4 2024 gold demand value was Rs. 192,080 crores, up by 37% as compared to 140,480 crores in Q4 2023.

2: Total Jewellery demand in India -

Tonnage

    • For 2024 decreased by 2% to 563.4 tonnes as compared to 575.8 tonnes in 2023
    • For Q4 2024 decreased by 5% to 189.8 tonnes as compared to 199.6 tonnes in Q4 2023

Value

·         The value of jewellery demand in 2024 increased by 22% to Rs 361,690 crores in 2024 as compared to Rs 296,610 crores in 2023

·         The value of jewellery demand in Q4 2024 was Rs 137,140 crores, up by 30% from Rs. 105,300 crores in Q4 2023.

 

3: Total investment demand -

Tonnage

    • For 2024 increased by 29% to 239.4 tonnes as compared to185.2 tonnes in 2023
    • For Q4 2024 increased by 14% to 76 tonnes in comparison to 66.7 tonnes in Q4 2023

Value

·         In value terms, gold investment demand in 2024 increased by 61% to Rs 153,700 crores as compared to 95,390 crores in 2023.

·         In value terms, gold Investment demand in Q4 2024 was Rs. 54,940 crores, up by 56% from Rs. 35,180 crores in Q4 2023. 

4: Total gold recycled in India –

    • Decreased by 2% in 2024 to 114.3 tonnes from 117.1 tonnes in 2023
    • In Q4 2024 recycling was 29.6 tonnes, up by 16% compared to 25.6 tonnes in Q4 2023   
    •  

5: Net Bullion imports in India –

    • In 2024 decreased by 4% to 712.1 tonnes as compared to 744 tonnes in 2023
    • In Q4 2024 imports were down by 1% to 223.1 tonnes as compared to 225.3 tonnes in Q4 2023
  • US$/oz prices
    • Average annual price in 2024 was US$ 2386.2/oz in comparison to US$ 1940.5/oz in 2023
    • Average quarterly price in Q4 2024 was US$ 2,663.4 in comparison to US$ 1,971.5 in Q4 2023
  • INR/10g
    • Average annual price in 2024 was Rs 64,200.6/10g in comparison to 51,513.9/10g in 2023 (without import duty and GST)
    • Average quarterly price in Q4 2024 was INR 72,268.3 in comparison to INR 52,761.3 in Q4 2023 (without import duty and GST).









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