Gold Demand India: There has been a decrease in the demand for gold in the second quarter of FY2023 in India. Let us know what is the reason behind this decrease in demand.
Gold Demand in India: Since the record rise in gold prices in India, a decline in its demand has been registered in the domestic market (Gold Demand Decreased in India). According to the report of the World Gold Council (WGC), between the April-June quarter (India Gold Demand in Q2), there has been a major decline of 7 percent in the demand for gold in the country and it has come down to 158.1 tonnes.
On the other hand, if we talk about the import of gold in the country, then in the second quarter of this year, an increase of 16 percent has been recorded in the import of gold, it has increased to 209 tonnes. Its storage is one of the main reasons behind the increase in gold imports. It is worth noting that India is the second largest consumer of gold.
People hesitating to buy gold!
According to WGC, the demand for gold in the country is likely to be around 271 tonnes in the first six months of FY2023. At the same time, this demand has been estimated to be close to 650 to 750 tonnes in the whole year. Talking to PTI, WGC India’s Regional CEO Somasundaram said that in the financial year 2023, there has been a tremendous increase in the price of gold in the domestic market. In such a situation, common customers are avoiding buying gold. He said that gold had reached a record level of Rs 64,000 per 10 grams for some time. Due to this, there has been a decrease in demand. Along with this, due to the tax policy of the government, the demand for gold has also been affected. Along with this, the decision to take Rs 2,000 out of circulation has also had an effect.
7 percent decrease in demand
In the quarter from April to June 2023 in the financial year 2023 in India, a total decline of 7 percent has been recorded in the demand for gold. In such a situation, it has decreased from 170.7 tonnes to 158.1 tonnes as compared to last year. Despite the lack of demand, an increase has been recorded in the total value of gold purchases. In the last year’s quarter, jewelry worth Rs 79,270 crore was sold in the domestic market, which has now increased to Rs 82,530 crore. Apart from this, there has been a decrease of 8 percent in the demand for gold jewelery during this period and it has remained only 140.3 tonnes as against 140.3 tonnes last year.
Increasing demand for 18 carat gold
Due to the tremendous increase in the prices of gold, its effect has also been seen on the purity of gold. It has also been revealed from this report that people are preferring to buy 18 carat gold jewellery. Usually jewelry is made in 22 carat gold, but due to increase in the price of gold, the demand for 18 carat gold has increased in the market. Along with jewellery, the demand for gold coins has also seen a decline of 3 per cent to 29.5 tonnes as against 30.4 tonnes last year.
