Indians can buy more gold next year. why over here

WGC is the market development organization for the gold industry. This is the first in a series of in-depth reports on India’s gold market, which looks at the key drivers of gold demand in the country.

The lower-than-expected demand is also due to the prolonged coronavirus-related disruption after the country’s battle with a second wave.

However, imports remain strong and retail demand is expected to pick up as restrictions are gradually lifted across the country. Amid the festive season, jewelers generally expect good sales in the October-December quarter.

At the moment, gold prices are close to one-month high ₹47,546 per 10 grams in the Indian market.

However, in 2022, the report said that economic growth and the impact of declining gold demand is likely to set off a period of strong demand, although any future outbreak of coronavirus could create further uncertainty.

In India, rising income is one of the biggest drivers of gold demand, and as India’s economy grows, sales of the precious metal should increase, the WGC report said.

Since the 1990s, the report noted that as the middle class expanded and household income increased, per capita net income increased ₹from 7,000 ₹1,34,186 per year in FY20.

However, “families are saving proportionately less than before, reducing the amount of capital they allocate for gold,” it added.

In the long run, income can be the major long-term driver of demand, but it is influenced by many other factors, including policy measures.

“Such measures lack support as policymakers only look at gold demand through the prism of imports. Meanwhile, the industry’s efforts to improve transparency are not united,” the report said.

“Building trust and awareness among consumers, along with innovation, can allow India’s gold industry to play a vital role in enhancing the image, boosting domestic demand and rebuilding domestic finances in the post-Covid world. Is.”