New Delhi [India], August 10 (ANI): Against the backdrop of monetary policy tightening by several central banks including the Reserve Bank of India, gold as an asset may offer investors a source of return on their investments and effective diversification of the portfolio, said World Gold Council in its latest Investment Update.

Mumbai Jan 28 PTI Indias gold consumption surged to 7973 tonnes in 2021 on the back of recovery in consumer sentiments and pent-up demand post COVID-19-related disruptions and the bullish trend is set to continue this year as well according to the World Gold Council WGC WGC in its Gold Demand Trends 2021 Report said Indias total gold demand jumped to 7973 tonnes in 2021 registering a massive 786 per cent jump from 4464 tonnes during 2020 The year 2021 revalidated the strength of conventional wisdom about gold and holds several lessons in revival that will shape policy thinking for years to come WGC Regional CEO India Somasundaram PR told PTI Somasundaram further said Indias gold demand recovered by 79 per cent to 7973 tonnes chiefly a result of an exceptional fourth quarter demand of 343 tonnes that surpassed even our most optimistic expectation articulated in the third quarter and turned out to be the best quarter in our recorded data series Going forward he said this year COVID-19 and its future variants will remain a factor to watch as will price movements in gold given global concerns on inflation interest rate and geo-political developments The spurt in demand that is in part a result of pent-up demand in the fourth quarter is less likely to be repeated this year though the revival will continue to set a new normal above pre-pandemic levels The next few years starting with 2022 will be years to watch for the effect of policy reforms technology and industry collaboration to let gold evolve into a more transparent mainstream asset class he stated For the full year in 2022 Somasundaram said if the current scenario continues without any further major disruptions then the total gold demand is likely to be around 800-850 tonnes The report further noted that jewellery demand during 2021 was up by 93 per cent at 6109 tonnes compared to 3159 tonnes in 2020 Gold jewellery demand doubled year-on-year in 2021 surging past pre-pandemic levels to reach a six year high following a record fourth quarter demand of 265 tonnes fuelled by weddings and festival season underpin the resilience of gold demand following its deep-rooted socio-economic footprint in household finance Somasundaram said In value terms jewellery demand skyrocketed by 96 per cent to Rs 261140 crores from Rs 133260 crores in 2020 He said with the easing of lockdown restrictions in the second half and a successful progress of the vaccination program economic growth altered consumer sentiment significantly triggering spending and investments across the board during festivals like Dussehra and Dhanteras This marked a remarkable recovery with many retailers reporting record sales volumes above even those of pre-pandemic levels and imports and exports rising in tandem With more weddings yet muted celebrations higher savings and pent-up demand boosted the jewellery market he noted Many manufacturers reported stretched capacities and unusual waiting times pointing to the robustness of recovery he added Meanwhile the total investment demand for 2021 was up by 43 per cent at 1865 tonnes in comparison to 1304 tonnes in 2020 while in value terms demand was up by 45 per cent at Rs 79720 crores against Rs 55020 crores in 2020 the report said However total gold recycled in India in 2021 declined by 21 per cent to 752 tonnes as compared to 955 tonnes in 2020 as per the WGC data Total gold imported in India increased by 165 per cent in 2021 to 9246 tonnes compared to 3495 tonnes in 2020 This surge in imports can mainly be attributed to manufacturers and retailers stocking up after clearing up their existing stocks following the implementation of hallmarking norms Somasundaram said Gold investment demand in the fourth quarter also surged to an eight-year high of 79 tonnes softer prices in November coupled with a positive outlook about future prices adding impetus to retail investments he said He said digital gold savings also rose impressively due to their ease and safety a pointer to altering future buying behaviour in investment gold PTI SM DRR

Mumbai Oct 28 PTI Indias gold demand has seen a 47 per cent year-on-year jump in the July-September quarter to 1391 tonnes following strong rebound in economic activity and recovering consumer demand the World Gold Council said in a report According to the World Gold Council WGC gold demand in India is bouncing back to pre-COVID levels and going forward the outlook looks bullish The countrys overall demand stood at 946 tonnes during the September quarter of 2020 the WGCs Q3 Gold Demand Trends 2021 report said adding that in terms of value Indias third quarter gold demand went up by 37 per cent to Rs 59330 crore compared to Rs 43160 crore a year ago This reflects a combination of low base effect and return of positive trade and consumer sentiments This is primarily driven by what appears to be a firm grip on the pandemic with higher vaccination rates and falling infection rates leading to a strong rebound in economic activity WGC Regional CEO India Somasundaram PR told PTI Going forward imports might not be very significant in the fourth quarter as little bit of stocking up for the festive season has already taken place during the third quarter of 2021 he stated Looking ahead with restrictions being gradually lifted across the country retail demand is bouncing back to pre-COVID levels With the upcoming festive and wedding season there is all the more enthusiasm towards gold demand and we anticipate it to be the busiest gold-buying season since the start of COVID said Somasundaram He further said that demand for digital gold has also increased manifold innovative tech initiatives tie-ups with digital gold and UPI platforms by leading jewellers has brought about a substantial increase in volume of buyers and investors preferring online purchases In the months ahead soaring commodity prices and logistical costs are expected to impose further pressures and the RBI has already adjusted its inflation expectations higher Rising inflation tends to drive gold demand Gold is perceived as a strong hedge against inflation and decades of data supports this assumption While we have not made any forecast for the rest of the year barring any unexpected twist in tale we could see a sharp spike in demand in the last quarter of 2021 and is likely to be one of the best quarters in a decade he added As per the report total jewellery demand in India for the quarter under review increased by 58 per cent to 962 tonnes compared to 608 tonnes during the July-September quarter of 2020 While in value jewellery demand grew by 48 per cent at Rs 41030 crore as against Rs 27750 crore a year ago Total Investment demand for the third quarter increased by 27 per cent to 429 tonnes from 338 tonnes in the same quarter of 2020 In value terms gold Investment demand in July-September went up 19 per cent to Rs 18300 crore from Rs 15410 crore a year ago according to the report Meanwhile the total gold recycled in India declined by 50 per cent to 207 tonnes in the period under review compared to 415 tonnes in the same period of last year Total net bullion imports without taxes in the third quarter surged by 187 per cent to 2556 tonnes from 89 tonnes in the same quarter of 2020 While gold jewellery and investment demand for bars and coins also grew in a quarter that tends to be seasonally subdued due to monsoons and inauspicious periods like Pitru-Paksha when buyers stay away from buying gold Softer gold prices have also generated significant consumer interest ahead of seasonal demand Somasundaram said Gold prices during the third quarter averaged at Rs 42635 per 10 grams compared to Rs 45640 in the same quarter of 2020 and Rs 43076 during the April-June 2021 he noted Trade activity witnessed during various buyer-seller meets and anecdotal feedback from manufacturers indicate that the fourth quarter festive season could be the best in several years with strong imports much ahead of the third quarter demand demand he noted He said a 50 per cent drop in gold recycling also underlines strong consumer intent to hold gold rather than sell it aided by a robust institutional market for loan against gold that continues to grow PTI SM DRR DRR

Mumbai Oct 28 PTI Global gold demand fell by 7 per cent during the July-September quarter to 831 tonnes compared to the same period of 2020 primarily due to outflows from gold-backed exchange-traded funds gold ETFs according to a World Gold Council WGC report The total demand stood at 8944 tonnes during the third quarter of 2020 WGCs Q3 Gold Demand Trends 2021 report said on Thursday Net gold ETF sales were relatively small 27 tonnes but when compared to 274 tonnes during the pandemic-induced buying surge of a year earlier this was enough to place overall gold demand into a year-on-year decline despite demand increasing in all other sectors the report observed The ETF outflows were negative mainly localised to the US while it did well in Europe and Asia This decline was mainly due to risk on attitude among US investors gold price drop stronger US dollar among others WGC Regional CEO India Somasundaram PR told PTI Gold price averaged USD 1790 an ounce throughout the third quarter this year compared to USD 1900 a 6 per cent drop year-on-year The relatively modest outflows from gold ETFs have had a disproportionate effect on this years figures outweighing positivity almost everywhere else across the board The outflows themselves are part of a bigger picture A year ago investors were flocking to gold seeking a hedge against the pandemic And gold ETFs were particular beneficiaries of these flows adding more than 1000 tonnes over the first three quarters of the 2020 WGC Senior Markets Analyst Louise Street said So while there has been selling by gold ETF investors this year the outflows have been modest in comparison she added Meanwhile bars and coins physical gold products bought by retail investors saw 18 per cent growth for the fifth consecutive quarter of year-on-year gains with 262 tonnes purchased in July-September 2021 compared to the corresponding period of 2020 at 221 tonnes it said The report further revealed that there was healthy growth in consumer demand across all markers during the July-September quarter Gold jewellery demand increased by 33 per cent year-on-year during the third quarter at 443 tonnes compared to 333 tonnes in the same period of 2020 Gold used in technology grew 9 per cent YoY at 838 tonnes compared to 772 tonnes during the third quarter of 2020 the report stated The central banks added 69 tonnes to their reserves against selling off 10 tonnes in the same period last year according to the report Further the WGC report said the total supply was 3 per cent lower YoY at 1239 tonne compared to 12794 tonnes last year despite mine production rising to the highest quarter on record The YoY drop was due to a sharp fall in recycling in response to lower gold prices the report noted The rest of the gold market is seeing positive news not least the strong growth in jewellery and technology demand especially pleasing because they are at least partially consequences of an overall global economic recovery Street said noting that the central banks remain net buyers and bar and coin investment is growing Looking forward we expect the full-year picture for gold demand to look very similar strong consumers and the central bank will mitigate losses from ETFs Jewellery demand will continue to exceed last years levels but investment demand in total will be weaker in 2021 despite healthy bar and coin demand she added PTI SM ANS ANS