Journalism of Courage
Gold demand in India fell by 32 per cent to 148.2 tonnes in July-September period of 2013 due to supply constraints and high inflation,World Gold Council (WGC) said today.
Demand in Q4 of this year is expected to be lower than 262 tonnes in the same period of the last year. The overall demand for the whole of 2013,however,is likely to be 900 tonnes,higher than 860 tonnes in 2012. Also,China with an estimated demand of 1,000 tonnes may topple India as the worlds top gold consumer.
Supply constraints and high inflation resulted in decline in gold demand by 32 per cent to 148.2 tonnes in third quarter of this year as compared to 219.1 tonnes in the same period last year, the WGC managing director (India) Somasundaram PR said.
Both gold jewellery and investment demand declined by 23 per cent and 48 per cent,respectively,in the third quarter of this year. Recycled gold almost doubled to 61.3 tonnes from 34 tonnes in the same period,the WGC report said.
Gold imports were only 85 tonnes in Q3 against the demand of 148.2 tonnes for the same period last year.
If this supply restrictions continue,the demand in the fourth quarter will be met through unofficial channel which has grown significantly, he said.
