World Gold Council Report: People’s love for buying gold is increasing in the world, the special thing is that people are not so enthusiastic about investing in it as the trend is seen about buying in the form of jewelry or physical gold. The new Gold Demand Trends report of the World Gold Council has shown that the demand for gold has registered a growth of 28 percent on a yearly basis. Surge in demand The level of annual demand for gold has reached the level before Kovid.
What’s in the World Gold Council report
The demand for gold (excluding OTC) has reached the level of 1181 tonnes in the third quarter of July-September 2022, and this increase in the demand for gold came due to the customers and central banks, although there was a decline in investment demand.
People’s love for gold increased, buying fiercely
Gold demand in India has seen an increase of 14 per cent in the July-September quarter and has come to 191.7 tonnes, while the demand for gold in July-September 2021 stood at 168 tonnes. On the other hand, talking about the gold demand value, the demand value of gold in the July-September quarter 2022 was Rs 85010 crore, while the demand value of gold in the July-September quarter 2021 was Rs 71630 crore, ie, in the third quarter this year, it grew by 19 percent. Is.
Gold jewelery demand in India also strong in the third quarter
The demand for gold jewelery stood at 146.2 tonnes in the July-September quarter 2022, while the demand for gold jewelery stood at 125.1 tonnes in the July-September quarter 2021. That is, in the third quarter of this year, the demand for total gold jewelery in the country has increased by 17 percent.
Investment in gold has come down – World Gold Council
Investments fell 47 per cent on a year-on-year basis as ETF investors traded against the challenge of higher interest rates and a stronger US dollar, leading to withdrawals of 227 tonnes. These developments, coupled with weak OTC demand and negative sentiment in the futures markets, weighed on gold prices – a quarterly decline of 8 per cent during the third quarter of 2022.
Tremendous buying of gold also took place in Turkey, Germany
Despite these odds, gold continued to be popular among retail investors who reacted to varying market conditions and turned to gold due to its value amid rising inflation and geo-political uncertainty. Investors battled inflation with gold bars and coins, pushing up 36 per cent year-on-year overall retail demand. The trend was fueled by strong buying in Turkey (more than five times year-on-year) and Germany (up 25 per cent year-on-year to 42 tonnes), but all major markets contributed significantly.
Jewelry shopping came to a pre-Covid level
The trend of increasing consumption of jewelery continued and has now reached the pre-pandemic level and stood at 523 tonnes, which is 10 per cent higher than the third quarter of 2021. India’s urban consumers contributed significantly to this growth, with demand growing 17 per cent year-on-year at 146 tonnes. Along with this, Saudi Arabia saw a 20 percent increase in the consumption of jewelery in the third quarter of 2021, while the United Arab Emirates also registered a growth of 30 percent during this period and thus saw tremendous growth in almost the entire Middle East . In China too, jewelery demand saw a 5 per cent year-on-year increase, driven by increased consumer confidence and a fall in local gold prices, leading to a pick-up in demand.
What does the World Gold Council have to say
world gold council Of Senior Markets Analyst Louis Street This year’s demand has become clear that gold still enjoys the status of a safe investment vehicle amid uncertainties in the macroeconomic scenario. Going forward, we expect central bank buying and retail investments to remain strong and this will help offset the shortfall in OTC and ETF investments. OTC and ETF investments as the dollar remains strong We also expect jewelery demand to remain strong in some regions, such as India and Southeast Asia. Also, the technology sector is expected to continue to decline due to the impact of the global economy.”
Central banks are increasing purchases
With the strengthening of the demand for gold among the customers, there was a spurt in the purchase of gold by the central banks. During this period, during the third quarter, central banks made a record purchase of about 400 tonnes. This pattern reflects information from a survey conducted among central banks in which 25 per cent of the participants said they want to increase their gold reserves over the next 12 months.
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