‘India's gold demand was up 13 per cent in 2013, compared to 2012. Demand in the second half was lower due to the effect of the supply curbs introduced in that period, but, equally, it was due to households having met a large part of their annual gold requirements in the first half, using the price drop in April as a buying opportunity,’ WGC managing director India Somasundaram said.
The total jewellery demand in the country in 2013 was up by 11 per cent at 612.7 tonnes valued at Rs 1,61,750.6 crore against 552 tonnes valued at Rs 1,58,359.1 crore in 2012.
The total investment demand for 2013, was up by 16 per cent at 362.1 tonnes from 312.2 tonnes in 2012. In value terms, gold investment demand rose by six per cent at Rs 95,460.8 crore against Rs 90,184.6 crore in 2012.
Recycled gold, however, declined by 10.79 per cent to 100.8 tonnes in 2013, compared to 113 tonnes in 2012. The latter half of 2013, Somasundaram said, has seen intense grey market activity but its impact will be more visible and significant this year if the import curbs continue. Estimates of the extent of gold smuggling in India vary widely, market analysts have suggested it could have added between 20-30 tonnes per month, the report pointed out.
‘However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range,’ he said.
Talking about 2014, Somasundaram said the industry is not in a very happy situation but the year will be a come back for the precious metal.
Meanwhile, world demand down 15%
Mumbai: The global gold demand in 2013, declined by 15 per cent to 3,756 tonne compared to 2012, mainly due to large-scale outflows from electronic traded funds (ETFs) to the equity markets, according to the World Gold Council report.
In 2012, the global gold demand stood at 4,415.8 tonnes, the WGC 'Gold Demand Trends 2013' report said. There was a net outflow from ETFs of 180 tonne in Q4 as investors continued to re-evaluate their portfolios in response to market conditions.
Overall, investors redeemed 881 tonne from ETFs in the full year, the report said. However, the gold market saw 21 per cent growth in demand from consumers, the report said.
‘2013 has been a strong year for gold demand across sectors and geographies, with the exception of western ETF markets. Specifically, it was the year of the consumer.
Although demand has continued its shift from west to east, the growing demand for gold bars, coins and jewellery is a global phenomenon,’ WGC managing director, Investment Strategy, Marcus Grubb said in a release issued here.
Jewellery demand for the year rose 17 per cent to 2,209 tonnes, while investment in bars and coins was up 28 per cent to 1,654 tonnes.
China and India both recorded increased demand in 2013, while consumer demand in China rose 32 per cent to a record level of 1,066 tonnes, in India demand rose 13 per cent to 975 tonnes.
The report further said, across the world there was huge rise in consumer appetite for gold in both emerging and developed markets.
Demand in Turkey was up 60 per cent, Thailand up 73 per cent and the US up 18 per cent.
The sustained environment of lower prices, coupled with improving consumer sentiment and the onset of the main Q4 buying season resulted in a pick up across a number of western markets,
the report said.
The annual imports of gold jewellery into the US increased for the first time since 2005, with significant volume increases in imports from India, China and Italy.
The report further revealed that Central banks continued to be strong buyers of gold and saw net purchases in all four quarters totalling to 369 tonne in 2013, even as it was down by 32 per cent from 2012.
The total supply for the year declined by two per cent to 4,340 tonnes compared to 2012.
The total jewellery demand in the country in 2013 was up by 11 per cent at 612.7 tonnes valued at Rs 1,61,750.6 crore against 552 tonnes valued at Rs 1,58,359.1 crore in 2012.
The total investment demand for 2013, was up by 16 per cent at 362.1 tonnes from 312.2 tonnes in 2012. In value terms, gold investment demand rose by six per cent at Rs 95,460.8 crore against Rs 90,184.6 crore in 2012.
Recycled gold, however, declined by 10.79 per cent to 100.8 tonnes in 2013, compared to 113 tonnes in 2012. The latter half of 2013, Somasundaram said, has seen intense grey market activity but its impact will be more visible and significant this year if the import curbs continue. Estimates of the extent of gold smuggling in India vary widely, market analysts have suggested it could have added between 20-30 tonnes per month, the report pointed out.
‘However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range,’ he said.
Talking about 2014, Somasundaram said the industry is not in a very happy situation but the year will be a come back for the precious metal.
Meanwhile, world demand down 15%
Mumbai: The global gold demand in 2013, declined by 15 per cent to 3,756 tonne compared to 2012, mainly due to large-scale outflows from electronic traded funds (ETFs) to the equity markets, according to the World Gold Council report.
In 2012, the global gold demand stood at 4,415.8 tonnes, the WGC 'Gold Demand Trends 2013' report said. There was a net outflow from ETFs of 180 tonne in Q4 as investors continued to re-evaluate their portfolios in response to market conditions.
Overall, investors redeemed 881 tonne from ETFs in the full year, the report said. However, the gold market saw 21 per cent growth in demand from consumers, the report said.
‘2013 has been a strong year for gold demand across sectors and geographies, with the exception of western ETF markets. Specifically, it was the year of the consumer.
Although demand has continued its shift from west to east, the growing demand for gold bars, coins and jewellery is a global phenomenon,’ WGC managing director, Investment Strategy, Marcus Grubb said in a release issued here.
Jewellery demand for the year rose 17 per cent to 2,209 tonnes, while investment in bars and coins was up 28 per cent to 1,654 tonnes.
China and India both recorded increased demand in 2013, while consumer demand in China rose 32 per cent to a record level of 1,066 tonnes, in India demand rose 13 per cent to 975 tonnes.
The report further said, across the world there was huge rise in consumer appetite for gold in both emerging and developed markets.
Demand in Turkey was up 60 per cent, Thailand up 73 per cent and the US up 18 per cent.
The sustained environment of lower prices, coupled with improving consumer sentiment and the onset of the main Q4 buying season resulted in a pick up across a number of western markets,
the report said.
The annual imports of gold jewellery into the US increased for the first time since 2005, with significant volume increases in imports from India, China and Italy.
The report further revealed that Central banks continued to be strong buyers of gold and saw net purchases in all four quarters totalling to 369 tonne in 2013, even as it was down by 32 per cent from 2012.
The total supply for the year declined by two per cent to 4,340 tonnes compared to 2012.