India’s gold demand up 27% in Jan-Mar 2013 to 256.5 tonnes, says WGC
Moneylife Digital Team 16 May 2013

Total jewellery demand rose 15% to 159.5 tonnes from 138.3 tonnes, while investment demand increased by 52% to 97 tonnes from 63.8 tonnes, WGC said

Gold demand in India, the world’s largest consumer, rose 27% to 256.50 tonnes in the first quarter of the calendar year 2013, according to data from the World Gold Council (WGC).

Demand for the precious metal stood at 202.1 tonnes during the same quarter last year, it said.

“Gold demand in India for both jewellery and investment continues to remain strong. Price fluctuations in gold recently have only served to reinforce Indian consumers’ appetite for purchasing physical gold,” WGC India managing director Somasundaram PR told reporters.

He said gold is a time-tested asset class which has helped preserve the wealth of Indian families for generations.

“With the ongoing wedding and festive season, we believe that demand for gold will continue to remain robust,” he said.

In terms of value, WGC said in its latest report that gold demand in India during January-March period of this year increased by 32% to Rs72,899.4 crore against Rs55,148.7 crore in the year-ago period.

Total jewellery demand rose 15% to 159.5 tonnes from 138.3 tonnes, while investment demand increased by 52% to 97 tonnes from 63.8 tonnes.

About 21 tonnes of gold was recycled during the quarter under review against 25 tonnes in the same quarter last year, the report said.

Global demand fell 13% to 963 tonnes as strong growth in consumer demand for gold jewellery, bars and coins was exceeded by substantial net outflows from gold ETFs, it said.
 

Comments
Steve
8 years ago
Gold (along with silver) is the only asset which can fuel both fear and greed in the same direction simultaneously. It is the only asset which is not simultaneously somebody else's liability. Gold looks like a great choice at the moment compared to its paper (fiat) cousin Rupee, which in turn is poised for a devaluation due to the dangerous level of CAD. Why should people hold Rupee in that case?

Government has mismanaged the economy in the last 10 years big time and the inflation is the proof of that. People have subconsciously learnt that gold is the ultimate shelter for their purchasing power and have no longer any faith in the Rupee. All the counterfeit credit spewed out by the banks in the last decade under the active supervision of the RBI has created massive asset bubbles mainly in the real estate and equity sectors. Gold is only the canary in the coalmine. Don't be in denial. In the fiat regime, debt does not vanish, it only changes hands. Its ultimate liability lies with the RBI. In the absence of anything tangible backing it, the Rupee is backed by debt. Debt is backed by more debt. Without issuing new debt you can not sustain existing debt as it needs interest servicing. How long can it go on? Have you heard of the Minsky moment? Does Subbarao understand the complexity of the exponential functions?

Gold is not an investment. It is money (irrespective of what the Basel crooks say). For millenia Fiat has come and gone after the debauchery. Gold has stood the tests of time. Krugmanites may disagree but gold is the measuring rod for the currency. It enforces fiscal discipline. One can not live beyond their means. Gold's marginal utility does not decrease significantly no matter how abundantly it is available (unlike other commodities) hence it makes a case for sound money. Let gold compete against the Rupee. Government will be forced to act then. Suppressing it (through import ban etc.) will only make it more desirable. Smugglers in Dubai might have earmarked gold consignments already after RBI imposed the ban yesterday.

Do not underestimate the wisdom of our ancestors. That's how our culture has lasted for millenia whereas other civilisations and empires have come and gone. Keynesianism might say gold is a barbarous relic, ancient tradition etc. but it in fact cripples the politicians' populist dreams of spending the money that does not exist. Man never learns and the learning never ends.
Steve
8 years ago
Gold (along with silver) is the only asset which can fuel both fear and greed in the same direction simultaneously. It is the only asset which is not simultaneously somebody else's liability. Gold looks like a great choice at the moment compared to its paper (fiat) cousin Rupee, which in turn is poised for a devaluation due to the dangerous level of CAD. Why should people hold Rupee in that case?

Government has mismanaged the economy in the last 10 years big time and the inflation is the proof of that. People have subconsciously learnt that gold is the ultimate shelter for their purchasing power and have no longer any faith in the Rupee. All the counterfeit credit spewed out by the banks in the last decade under the active supervision of the RBI has created massive asset bubbles mainly in the real estate and equity sectors. Gold is only the canary in the coalmine. Don't be in denial. In the fiat regime, debt does not vanish, it only changes hands. Its ultimate liability lies with the RBI. In the absence of anything tangible backing it, the Rupee is backed by debt. Debt is backed by more debt. Without issuing new debt you can not sustain existing debt as it needs interest servicing. How long can it go on? Have you heard of the Minsky moment? Does Subbarao understand the complexity of the exponential functions?

Gold is not an investment. It is money (irrespective of what the Basel crooks say). For millenia Fiat has come and gone after the debauchery. Gold has stood the tests of time. Krugmanites may disagree but gold is the measuring rod for the currency. It enforces fiscal discipline. One can not live beyond their means. Gold's marginal utility does not decrease significantly no matter how abundantly it is available (unlike other commodities) hence it makes a case for sound money. Let gold compete against the Rupee. Government will be forced to act then. Suppressing it (through import ban etc.) will only make it more desirable. Smugglers in Dubai might have earmarked gold consignments already after RBI imposed the ban yesterday.

Do not underestimate the wisdom of our ancestors. That's how our culture has lasted for millenia whereas other civilisations and empires have come and gone. Keynesianism might say gold is a barbarous relic, ancient tradition etc. but it in fact cripples the politicians' populist dreams of spending the money that does not exist. Man never learns and the learning never ends.
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