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Gold price support over Rs 61K per 10 grammes   Right now our auspicious festive Gudi Padva, is just at latch and gold price trend is on rock! At the occasion Somasundaram PR, Regional CEO, India at World Gold Council (WGC) said, “This year Gudi Padwa is being celebrated even as gold prices are headed for historic highs in the domestic market.    As economic growth influences demand significantly and this gets reflected in gold purchases on such auspicious days, demand is poised for good growth in 2023. Price pressures could keep rural demand subdued. Urban buying and digital gold accumulations which permit flexible low-ticket sizes could be emerging stories during this festive season.”  In general WGC is not focussing much on gold price trend and gold price outlook. In the perspective Colin Shah, MD, Kama Jewelry expressed as an expert on gold prices hitting Rs 60,000/10gm level.  He said, “Gold prices have risen almost 7-8% in the past month.    The rally in the yellow metal is p

The noticeable impact on Akshaya Tritiya demand   Somasundaram PR, Regional CEO, India at World Gold Council, shared his view on Akshaya Tritiya; “India's gold jewellery demand declined by 26% y-o-y in Q1 2022, to 94 tonnes, after reaching record highs in Q4 2021.   Fewer auspicious days, combined with a sharp spike in gold prices meant fewer weddings and a pause in retail demand, with households deferring gold purchases in the hope of a price correction.  As a major gold buying festival, we should see Akshaya Tritiya overcome these barriers and provide further impetus to demand in the second quarter. Underlying consumer sentiment is improving, which should also prove supportive.   The noticeable intensity of marketing efforts by players on the back of new digital and omni-channel retail strategies will positively impact demand during Akshaya Tritiya. Economic growth, combined with inflationary expectations, are poised to bolster gold purchase this festive season, however price

                                          Consumer sentiment remains muted                                                                                          Offline sales severely impacted   Jewellery Market Bureau: The scenario 2021 was well described by the Somasundaram PR, Managing Director-India, World Gold Council on Akshaya Tritiya and said, “Akshaya Tritiya is celebrated under the shadow of covid pandemic for a second year in a row. Buying and gifting gold is considered auspicious on this day and it has huge cultural significance.” He said, amid lockdowns in several parts of the country and an uneasy air of fear that hangs, consumer sentiment remains muted and offline sales have been severely impacted, particularly in major cities and gold consuming states like Kerala, Andhra Pradesh, Maharashtra and West Bengal. Many organised jewellers have, however, adopted digital and omnichannel strategies to reach out to their consumers, learning from the lockdown experience of 20

Jewellery demand in value term grew up by 58%!  Net bullion imports in India rose-up by 262%   According to the key fact-n-figures that announced by the World Gold Council (WGC) for Gold demand full year for the period of January – March 2021, demand for gold in India for Q1 2021 was at 140 tonnes, increase by 37% as compared to overall Q1 demand for 2020 of 102 tonnes. India’s Q1 2021 gold demand value was Rs 58,800 crores, an increase of 57% in comparison with Q1 2020 of Rs 37,580 crores.   Total Jewellery demand in India for Q1 2021 was up by 39% at 102.5 tonnes as compared to Q1 2020 had halted at 73.9 tonnes. The value of Jewellery demand was Rs 43,100 crores, a rise of 58% from Q1 2020 of Rs. 27,230 crore.   Total Investment demand for Q1 2021 increased by 34% at 37.5 tonnes in comparison with Q1 2020 had stayed at 28.1 tonnes. In value terms, gold Investment demand was of Rs. 15,780 crores, up by 53% from Q1 2020 recorded of Rs. 10,350 crores. Total gold recycled in India

India jewellery demand down by 42% in 2020   Expected 2021 to go further normalcy returns and s teady course of reforms strengthen the industry India!   Implementation of mandatory hallmarking in June 2021   Key Highlights: 1: Gold demand full year January –December 2020, 2: The gold demand for the full-year 2020 is 446.4 tonnes compared to 690.4tonnes in 2019, 3: Total jewellery demand in India for 2020 was down by 42% at 315.9 tonnes as compared to 544.6 tonnes in 2019, 4: The value of jewellery demand in 2020 was Rs.133,260 crores, down by 22% from 2019(Rs. 171,790 crore) .   5: Total investment demand for 2020 was down by 11% at 130.4 tonnes in comparison to 145.8 tonnes in 2019 In value terms, gold investment demand was Rs. 55,020 crores, up by 20%from 2019(Rs. 45,980 crores),6: Total gold recycled in India in 2020 was 95.5 tonnes as compared to 119.5 tonne. Somasundaram PR, Managing Director, India, World Gold Council said:“India’s gold demand dropped by over a third in 2

  A demand for gold loans through banks & NBFCs   In their Market Update for the November 2020 World Gold Council (WGC) published, Gold loans help India weather the Covid-19 storm. At the occasion Somasundaram PR, Managing Director, India, WGC said, “The gold loan industry has traditionally been a pillar of support for small businesses and households in need of emergency short term assistance.   In addition to unorganized lending that normally co-exists with any robust gold market, the regulated Institutional framework of “gold loans” in India has made it ubiquitous over the past decade which is indeed a boon.  In particular, Covid has boosted demand for gold loans through banks and non-banking financial companies (NBFCs).   The recent rise was seen some time since July 2019 when prices started moving up sharply. 28.8% rallies in domestic gold price this year and the need for quick credit among small businesses will further spur gold loans’ growth post Covid. Gold loans will

Investment demand for gold bars and coins by 51%   WGC India announces India Gold Demand Statistics for Q3 2020 (July - September). Speaking about India Gold Demand Statistics for Q3 2020, Somasundaram PR, Managing Director, India, World Gold Council said, India’s Q3 2020 gold demand fell by 30% to 86.6 tonnes on the back of Covid related disruptions, bleak consumer sentiment and high prices accompanied by volatility.   This is, however, higher than Q2 which at 64 tonnes was a 70% drop and the second lowest in our quarterly series. This has been partially due to easing of lock down and some low prices in August that provided a small window of buying opportunities for the discerning.   Q3 tends to be relatively low generally due to seasonal factors like monsoons and inauspicious periods like Pitru-Paksh and Adhik Maas. Jewellery demand fell by 48% to 52.8 tonnes as jewellery purchases did not have any support of festivals or weddings. On the other hand, gold’s safe haven attribute

A pragmatic approach by the government: WGC   Upon the announcement by Consumer Affairs Minister Ramvilas Paswan that “In the wake of the coronavirus pandemic, the government has extended an earlier deadline for mandatory hallmarking of gold jewellery and artefacts by four months” Somasundaram PR, Managing Director, India, World Gold Council (WGC) expressed his view.   Somasundaram PR said, “The extension of time by six months for mandatory hallmarking reflects a pragmatic approach by the government to support the industry in the current environment while keeping the path of reform intact. Soon after the announcement early this year making hallmarking mandatory and giving a transition time of one year for manufacturers and jewellers to adapt to new logistics and dispose-off non-hallmarked inventories, Covid struck causing unprecedented business disruption.   Demand has slumped and therefore, the transition time has to be stretched to enable industry to embrace this change. However,

Online gold market India   India has embraced online retailing across different categories. Digital and social activity plays an increasingly important part in the purchase journey for gold. In urban India, consumers browse online/mobile apps before making purchases; they use online blogs and social media for ideas and inspiration. And mobile wallets/apps have played a key role in the growth of Internet Investment Gold (IIG) in India.   The Covid-19 pandemic has disrupted the brick and mortar business model of Indian gold retailers and has become a catalyst for online channels to boost sales. In this report focuses on, 1: the growth of IIG, 2: the barriers to online gold purchase and opportunities to grow the online market & 3: how retailers are adopting a digital strategy post Covid-19.   In the context of the report Somasundaram PR, Managing Director, India, World Gold Council (WGC) said, “Online retail adoption accelerated during Covid-19 across categories. Though relative

A transparent trading market required! Jewellery fraternity on Budget 2019-20 Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman announced her Union Budget 2019-20 proposals and in the context gem & jewellery fraternity reacted over the Budget proposals. Let’s learn choicest views at the juncture! Somasundaram PR, Managing Director, India, World Gold Council: “Import duty hike on gold from 10% to 12.5% will negatively impact India’s gold industry. This will impede efforts to make gold as an asset class particularly when gold prices are already rising globally. In addition, the grey market will thrive which will dilute efforts to reduce cash transactions. Millions of Indians invest in gold as part of their household savings, not simply as discretionary spending for consumption. People buy gold as a long-term investment to protect their wealth and gold also has huge significance socially, emotionally and economically in India. An incre