InvestorQ : What has been the impact of the rising gold prices on jewellery demand in India?
Deepa Salunkhe made post

What has been the impact of the rising gold prices on jewellery demand in India?

Answer
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Juvina Maggie answered.
5 months ago


The two of the largest markets for jewellery in the world; India and China have seen a virtual slump in demand for gold jewellery. In fact, India’s demand for gold jewellery fell by 41% in the March 2020 quarter to 73.9 tonnes. This marks an 11-year low due to the weak demand triggered by the Coronavirus pandemic. The India fall is sharper than the 39% drop globally. Jewellery demand in China fell by 65% during Mar-20 quarter to a 13-year low of 64 tonnes. The gold prices are getting closer to $1750/oz, fairly close to their all time peak levels of $1879/oz touched in September 2011. The virus spread also caused disruption to gold supply with mine production dipping 3% YOY to a 5-year low of 795.8 tonnes. Clearly, the impact on gold jewellery demand has been quite sharp in India which is a fairly price sensitive market.