Gold demand in India has come down drastically. According to the World Gold Council (WGC), gold demand in the country fell by 70 per cent to 63.7 tonnes in the April – June quarter. The key reason for this is the lockdown implemented due to Corona. During the same period of 2019, gold demand in the country was 213.2 tonnes. According to the ‘Q2 Gold Demand Trends’ report released by WGC, gold demand in value terms stood at Rs 26,600 crore in the second quarter this year. Which is 57 percent less than the Rs 62,420 crore in the second quarter of 2019.
According to the WGC, total investment demand also fell by 56 per cent to 19.8 tonnes in the second quarter of 2020 from 44.5 tonnes in the same period last year. Talking about investment demand in VANU, it has come down from Rs 13,040 crore to Rs 8,250 crore in the review period. Similarly, recycled gold in the country also declined by 64 per cent to 13.8 tonnes, from 37.9 tonnes in the second quarter of 2019.
According to the WGC, there has been an unexpected drop in demand for jewelery during this period of epidemic. During April to June this year, demand for jewelery fell by 74 per cent to 44 tonnes. However, the situation has been somewhat better with regard to investment. Investment demand fell by 56 per cent. Investors turned to gold mostly as a safe haven.
