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India consumes around 746 tonne gold every year and going to grow – WGC

Will India’s appetite for Gold ever end? The answer experts give is a clear no despite all the statistics showing India as one of the poorest and weakest countries on earth. India’s role in education, healthcare, infrastructure, global standing and other related economic factors are minimal. But when it comes to buying Gold, there is always money.

India consumes around 746 tonne gold every year according to World Gold Council and this is only going to grow. Many gold related corporations depends on India for their survival.

This trend is the traditional Gold fantasy that Indian descendents have bestowed on the current generation which thinks Gold has always been not only auspicious but highly profitable. But a trader will tell you other commodities have gained tens of times more than what Gold has given.

Gold continues to be in heavy demand in India but the buyers have changed their buying pattern. Jewelry demand in the third quarter of 2011 fell 26 per cent to 125.3 tonnes, unusual under normal standards.

But online transactions, with many online stores open, have got to a good start. But this is more or less limited to new generation youths whereas the good old way of visiting the family jeweler still continues in India. Indian brides still cover their body with gold jewellery more than clothes and this is now known as culture and tradition trend.

With such a demand, even the government has started eyeing the Gold structure as it increased its import duty and now the transaction tax to be levied heavily, it is only a matter of time when investors will continue to depend on the black market of gold supply chain. – BullionStreet

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Posted by on Jan 31 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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