Rising gold demand in India appears to have a greater interest in this precious metal among the people than ever before. This is as the World Gold Council (WGC) showed a report and called this Indian point of view of thrush robust firm appraisal. Performance was positive on jewelry, coins, and bars on the part of customers who also appreciated the golden metal by producing it expediently during monsoon and winter seasons when most services would abandon the most popular golden metal, karat gold.
There is a significant regional market that supports the domestic costs of gold as they reach no less than those in the world markets. This standing is likely to remain one of the pivotal strategies in India which is one of the leading gold-consumable nations after China.
Gold Demand in India Got a Boost over the Season
India’s gold demand during Diwali did not disappoint owing to the various shapes of divinity that hinged on gold jewelry. Even with the increased prices, transactions at jewelry stores saw high footfall while there was a surge in the purchase of coins and bars online.
Kavita Chacko, the research head of WGC India, argued that inflation was ignored due to the gold hike as the volatile equity market drives the appeal of gold as an investment; which remains above the longer-run average. Even with negative volume growth in gold sales, the price hike pushed the overall gold sales numbers to increase the total by tranche.
Despite the festival-based purchases being made in different regions and by people of varying ages, this serves as a unique cultural element of enhancing the importance of gold among the people of India. There is also a new appreciation for gold when it comes to ETFs.
Gold Demand in Numbers
Gold’s demand in India, however, does not end only in buying gold. INR 19.6 billion ($233 million) flowed in one month alone making it the highest ever recorded, and the overall Indian gold ETFs AUM came to INR 445 billion ($5.3 billion), up 70% compared to last year.
This year was a good one for gold including the government-increased National Securities Depository Limited helped the fund raise a total of $302.8 million inflows which is more than twice the figure of $108.2 million raised last year.
Preferentially the current financial year unfurled in April 2023 right after the COVID-19 pandemic period. The amount increased by $744 million, with their selling amount of $1.11 recorded therein during a lump on the lot of it. The entire corresponding period covering the financial year that started on April 2023 and before December 2023, just realized an inflow of $301.
Also, see: Gold Prices Drop to Lowest: Should You Invest in Gold in India Now?