GJ Town India

  This gold worth US$3.8tn & size 88.8% of India’s GDP   Recently, Morgan Stanley focused on the robust India Economics and published their report; Ecoview: Gold - All that Glitters! Key contributors, Upasana Chachra, Chief India Economist & Bani Gambhir, Economist of Morgan Stanley India reported, India's households’ wealth held in gold is estimated at US$ 3.8tn / 88.8% of GDP. This is providing a positive wealth effect, even as benign macro stability ensures that flow of gold demand  remains range bound.    With gold prices scaling new highs, “we take stock of trends in gold demand, stock of gold holdings with households, and the impact on macro stability” said Morgan Stanley by listing, 1: Gold prices are currently at all-time highs, trading around US$4056/oz, with domestic prices also reaching record levels of ~Rs127,300/10 gms. YTD, gold prices have risen by 54.6% in USD terms and 61.8% in INR terms.    2: India remains the world’s second...

  Add 15t net; noted Q3 outlook to follow on 30 October    Recently World Gold Council [WGC] published its’ report on, Central bank gold statistics! The report said, Central banks added a net 15t to global gold reserves in August, based on reported data from both the IMF and respective central banks. This is broadly in line with monthly net purchases between March and June, and signals a return to buying form after global reserves were unchanged in July (we revised down our initial July estimate of +10t after Bank Indonesia reported an 11t sale).    As we’ve noted previously, the recent gold price rally, which has reached multiple new all-time highs so far this year, likely remains a constraint on the level of buying by central banks. It may be a factor in more tactical selling too. But the recent slowdown in buying does not necessarily signal that central banks as a whole are losing interest in gold. In fact, recent developments, which we discuss below – show t...

  Global jewellery demand faces a subdued outlook in 2025     Recently World Gold Council analysed jewellery demand in the recently published Gold Demand Trends for 2Q 2025. Jewellery retailers in China are likely to face an equally glum H2. One silver lining perhaps is that platinum is unlikely to offer much of a challenge, given the sensitivity to its strong price rise.    Another is that high savings rates might offer some capacity to buy in H2, but probably needs stimulus and a brighter outlook for 2026 and beyond. In India, the economy is still vibrant but is expected to soften a little in H2. Combined with high prices, jewellery demand will likely remain subdued as consumers are anecdotally adapting less quickly to high prices than they have historically.    This theme is likely echoed in other regions. Flat or lower prices won't elicit the same response one might see in an environment where disposable income is solid. Thus, our expec...