Gold demand in India, the world’s largest consumer, rose 27 per cent to 256.50 tonnes in the first quarter of 2013, the World Gold Council (WGC) has said.
Gold loses more shine as investors find gains in equities Demand for the precious metal stood at 202.1 tonnes during the same quarter last year, it said.
“Gold demand in India for both jewellery and investment continues to remain strong. Price fluctuations in gold recently have only served to reinforce Indian consumers’ appetite for purchasing physical gold,” WGC India Managing Director Somasundaram P.R. told reporters here today.
He said gold is a time-tested asset class which has helped preserve the wealth of Indian families for generations.
“With the ongoing wedding and festive season, we believe that demand for gold will continue to remain robust,” he said.
In terms of value, WGC said in its latest report that gold demand in India during January-March period of this year increased by 32 per cent to Rs 72,899.4 crore against Rs 55,148.7 crore in the year-ago period.
Total jewellery demand rose 15 per cent to 159.5 tonnes from 138.3 tonnes, while investment demand increased by 52 per cent to 97 tonnes from 63.8 tonnes.
About 21 tonnes of gold was recycled during the quarter under review against 25 tonnes in the same quarter last year, the report said.
Global demand fell 13 per cent to 963 tonnes as strong growth in consumer demand for gold jewellery, bars and coins was exceeded by substantial net outflows from gold ETFs, it said.