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Gold jewellery demand likely to rebound after note ban

Demand bounces back but uncertainty over GST rate for jewellery casts a shadow for future

Dilip Kumar Jha  |  Mumbai 

gold

India’s jewellery demand is likely to increase 17 per cent in 2017 on a bounce-back after

India Ratings, in its latest study, forecasts India’s jewellery demand at 600 tonnes in 2017, which is equivalent to the last five years’ average. The World Council (WGC) estimated India’s jewellery demand at 514 tonnes in 2016.

“Jewellery demand remains robust, given India’s demographics and wedding-related purchases. Demand is likely to rebound to above a five-year average of 600 tonnes in 2017,” said Harsha Sodhani, an analyst with

India’s demand plunged 21 per cent in 2016 to 675.5 tonnes from 857.2 tonnes in the previous year. Investment demand contributed 25 per cent, or 161.5 tonnes, of the total.

“The US economy has shown resilience in recent months, causing the dollar to strengthen, but has not lost its shine completely. Geopolitical tension in the Ukraine, Syria, and the South China Sea has kep alive the safe-haven appeal of gold,” said Prithviraj Kothari, managing director,

Experts said investment demand for might be affected by an interest rate hike by the US Fed Chair has hinted at an interest rate revision in March. Mehul Choksi, managing director, Gitanjali Gems, said demand would bounce back due to investors’ interest in US gilts and the appreciation of the dollar against major currencies.

Assuming investment demand at 160 tonnes, almost the same as last year, India’s overall demand could touch 750 tonnes in 2017.

India’s jewellery demand rose 3.5 per cent to 182.2 tonnes in October-December from 176 tonnes in the same quarter a year ago. Investment demand also rose 2.8 per cent to 61.8 per cent in October-December from 60.1 tonnes in the same period of 2015.

said a higher tax rate in the goods and services tax could dampen demand in the non-wedding segment that accounts for 35-45 per cent of purchases.

graph

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Gold jewellery demand likely to rebound after note ban

Demand bounces back but uncertainty over GST rate for jewellery casts a shadow for future

India's gold jewellery demand is likely to increase by 17 per cent for the calendar year 2017 on robust demand sentiment bouncing back after a drawdown in consumer demand post demonetization in November 2016.Leading rating agency India Rating in its latest study forecasts India's gold jewellery demand at 600 tonnes for calendar 2017 which is equivalent to the last five years' average. Data compiled by the World Gold Council (WGC) estimated India's gold jewellery demand at 514 tonnes for 2016."The underlying theme for jewellery demand remains robust, given India's demographics and the consumer's affinity towards gold for both wedding related purchases and as store of value. Hence, the demand is likely to rebound to above a five-year average of 600 tonnes in 2017," said Harsha Sodhani, an analyst with India Ratings.India's overall gold demand plunged by a staggering 21 per cent for calendar 2016 at 675.5 tonnes compared to 8572 tonnes for the previous year. Of which investment demand ...

India’s jewellery demand is likely to increase 17 per cent in 2017 on a bounce-back after

India Ratings, in its latest study, forecasts India’s jewellery demand at 600 tonnes in 2017, which is equivalent to the last five years’ average. The World Council (WGC) estimated India’s jewellery demand at 514 tonnes in 2016.

“Jewellery demand remains robust, given India’s demographics and wedding-related purchases. Demand is likely to rebound to above a five-year average of 600 tonnes in 2017,” said Harsha Sodhani, an analyst with

India’s demand plunged 21 per cent in 2016 to 675.5 tonnes from 857.2 tonnes in the previous year. Investment demand contributed 25 per cent, or 161.5 tonnes, of the total.

“The US economy has shown resilience in recent months, causing the dollar to strengthen, but has not lost its shine completely. Geopolitical tension in the Ukraine, Syria, and the South China Sea has kep alive the safe-haven appeal of gold,” said Prithviraj Kothari, managing director,

Experts said investment demand for might be affected by an interest rate hike by the US Fed Chair has hinted at an interest rate revision in March. Mehul Choksi, managing director, Gitanjali Gems, said demand would bounce back due to investors’ interest in US gilts and the appreciation of the dollar against major currencies.

Assuming investment demand at 160 tonnes, almost the same as last year, India’s overall demand could touch 750 tonnes in 2017.

India’s jewellery demand rose 3.5 per cent to 182.2 tonnes in October-December from 176 tonnes in the same quarter a year ago. Investment demand also rose 2.8 per cent to 61.8 per cent in October-December from 60.1 tonnes in the same period of 2015.

said a higher tax rate in the goods and services tax could dampen demand in the non-wedding segment that accounts for 35-45 per cent of purchases.

graph

image
Business Standard
177 22

Gold jewellery demand likely to rebound after note ban

Demand bounces back but uncertainty over GST rate for jewellery casts a shadow for future

India’s jewellery demand is likely to increase 17 per cent in 2017 on a bounce-back after

India Ratings, in its latest study, forecasts India’s jewellery demand at 600 tonnes in 2017, which is equivalent to the last five years’ average. The World Council (WGC) estimated India’s jewellery demand at 514 tonnes in 2016.

“Jewellery demand remains robust, given India’s demographics and wedding-related purchases. Demand is likely to rebound to above a five-year average of 600 tonnes in 2017,” said Harsha Sodhani, an analyst with

India’s demand plunged 21 per cent in 2016 to 675.5 tonnes from 857.2 tonnes in the previous year. Investment demand contributed 25 per cent, or 161.5 tonnes, of the total.

“The US economy has shown resilience in recent months, causing the dollar to strengthen, but has not lost its shine completely. Geopolitical tension in the Ukraine, Syria, and the South China Sea has kep alive the safe-haven appeal of gold,” said Prithviraj Kothari, managing director,

Experts said investment demand for might be affected by an interest rate hike by the US Fed Chair has hinted at an interest rate revision in March. Mehul Choksi, managing director, Gitanjali Gems, said demand would bounce back due to investors’ interest in US gilts and the appreciation of the dollar against major currencies.

Assuming investment demand at 160 tonnes, almost the same as last year, India’s overall demand could touch 750 tonnes in 2017.

India’s jewellery demand rose 3.5 per cent to 182.2 tonnes in October-December from 176 tonnes in the same quarter a year ago. Investment demand also rose 2.8 per cent to 61.8 per cent in October-December from 60.1 tonnes in the same period of 2015.

said a higher tax rate in the goods and services tax could dampen demand in the non-wedding segment that accounts for 35-45 per cent of purchases.

graph

image
Business Standard
177 22