Gold buying to grow 3-fold on fall in price

With the festive season round the corner, the industry expects the recent fall in prices to spur a three-fold surge in gold consumption this month from a lean patch in July.

Besides, this month’s consumption is also expected to be nearly double from the year-ago period on a sharp decline in prices, the All India Gems and Jewellery Association Chairman Ashok Minawala said.

“Buying of gold has already gone up significantly across the country this month and the trend is likely to continue,” he said.

The consumption this month could go up by 100 per cent from August last year and by 200 per cent from July this year, he added. Besides, this year’s total gold import might also be 15-20 per cent higher from last year, Minawala noted.

 

Last year, the total import stood at 797 tonnes, according to World Gold Council (WGC) data. Minawala said the current spurt in buying would completely cover up for the weakness in recent months due to volatile price movements.

According to WGC Director Darmesh Sodah, the activities in the country have substantially increased as gold has became an attractive option after the prices corrected from Rs 14,000 per 10 gm to Rs 11,500 in the last 20 days.