In spite of the tightening clutches of the government imposed gold import restrictions, gold demand in India increased 13% in 2013. The reports released by the World Gold Council (WGC) indicate an impressive surge of gold demand in India amidst the stringent rules and regulations put forth by the Reserve Bank of India.
Even though India gave away its first position of being World’s largest consumer of gold to China, the demand for the yellow metal among Indian’s was unaltered as usual. The WGC data shows that gold import reached 975 tons in 2013, in spite of the 10% import hike and 80:20 norms.
Gold demand in India due to the introduction of import curbs was lower during the second half of 2013. But the plunge of gold price in April gave the opportunity to purchase gold, especially when the wedding season was at full swing. According to the estimate of WGC, gold demand in 2014 is predicted to increase between 900-1000 tones, much better than last year’s demand.
Regarding the recycling of gold in India, data shows a considerable drop in its figure which is blamed for the absence of a robust structural reform and the monetization of the yellow metal. When compared to 2012, the total gold recycled in 2013 went down by 100.8 tons from 113 tons.
Commenting on China’s gold demand in 2013, WGC reports a 32% hike, reaching a record-breaking height of 1,066 tons. Considering the data of India’s and China’s gold bar and coin investment, China was found to increase 38%, India by 16 %. The jewelry demand in China was found to surge by 29% to reach 669 tons last year, while it went up 11% in India reaching 613 tones. The total global investment on gold jewelries was 2,209 tons, which claims to be the highest figure after the financial crisis of 2008.