Gold Jewellery Demand Nearly Doubled in India

(February 4, 2022 - Scrap Monster)

The Indian gold jewellery demand almost doubled during the previous year, says the Gold Demand Trends Report 2021 published by the World Gold Council (WGC). The demand totalled 611t, hitting the highest level in six years.

The easing of lockdown restrictions from mid-2021 and continued successful rollout of the vaccination program led to notable economic recovery during the second half of the previous year. This boosted consumer sentiment, especially in urban areas. Meantime, rural demand was supported by normal monsoon rainfall in most parts of the country, although crop loss due to floods affected demand in key South Indian states of Tamil Nadu and Kerala, WGC noted.

The demand remained robust in Q4 2021, mainly driven by festivals and weddings. The higher number of auspicious wedding days in Q4 and pent-up demand from weddings deferred during the previous quarters and rescheduled to Q4 further boosted jewellery demand in the country.
The continued improvement in consumer confidence and income levels will see jewellery demand in the country receiving further support during the current year, although amidst renewed uncertainties and challenges.