India’s consumption of gold zoomed 94% to 365 tonnes in the first half of 2010 as against 188 tonnes in the same period last year, showing a revival in the demand for yellow metal in the country. In value terms, demand for gold in India grew from Rs 27,300 crore in the first half of 2009 to Rs 60,500 crore in the same period of 2010, an increase of 122%.
In a report, World Gold Council (WGC) said that global demand for gold will remain robust during 2010 as a result of acceleration in demand in India and China, as well as increasing demand for investment, driven by continuing uncertainty over public debt and economic recovery. The report said gold demand has returned, particularly in India. The total demand of gold jewellery in the country remained strong in the first half of 2010, which showed an increase in volume by 67% to 272.5 tonnes as compared to 163 tonnes in the corresponding period of the last year. In rupee terms, this translates to an increase by 94% to Rs 45,700 crore.
The investment in the yellow metal also grew very strongly by 264% to 92.5 tonnes in the first half as compared to 25.4 tonnes in the corresponding period last year. In terms of value, investment accounted for Rs 14,800 crore in January-June of 2010, compared to Rs 3,700 crore in the same period of the last year.
According to the WGC, 2010 has provided a clear indication of the diversity in the usage of gold as an asset. As the year has progressed, the report said, the Indian gold market has grown significantly. With the Indian marriage season and important festivals like Dhanteras and Diwali coming up, the future seems to augur well for the yellow metal, it added. The report said India and China will continue to provide the main thrust of overall growth in demand, particularly for gold jewellery for the rest of 2010.