FIRST A strike by jewellers and now Rs 30,000-plus gold price per 10 gram — gold buyers in the country seem to have been pushed permanently on the backfoot.
After gold hit a record high price on Friday due to rise in its global and a weak rupee, its demand is expected to go down further by 25-30 percent this June vis-Ă -vis its corresponding period.
The industry sentiment has been in the last two quarters. While the first quarter of the year saw gold jewellery market suffering a drop in demand by 20 percent, during the second quarter too, demand has gone down by 25-30 percent as compared to the same period last year.
Industry experts say that China will manage to remain world’s top consumer in coming the months as well, as a drop in demand in India will not let it to regain its number one position in terms of gold consumption in the world.
In June 2011, about 55 tonne of gold was imported to meet the domestic demand. This could come down to 40 tonne in June this year if high gold rates prevail. In the last two months, imports have declined to 80-90 tonne from 180 tonne in April-May period of last year, inform industry experts.
According to the World Gold Council (WGC) China remains world’s top gold consumer for the second quarter in a row, with its gold demand up by 10 percent to 255.2 tonne, beating India’s 207.6 tonne. Baccharaj Bamalwa, President, All India Gems and Jewellery Trade Federation, said that the demand in May and June 2012 is expected to be as low as by 15-30 per cent in volume terms vis-à -vis the same period last year. “(May and June are) considered to be lean months. Gold prices have crossed an all-time high mark.”
