Gift-giving in India and an estimated 150 million weddings over the next decade are expected to help boost gold demand in that country by 30 per cent.
According to the World Gold Council (WGC), research shows cumulative annual gold demand will top 1200 tonnes by 2020, or 2.5 trillion rupees at today’s current prices.
The council’s report—”India: Heart of Gold”—finds gold is linked to value, wealth preservation, and growth in that country, as opposed to adornment. The research also shows consumer savings and real income levels, rather than price, drive India’s demand for gold.
“The rise of India as an economic power will continue to have gold at its heart,” said Ajay Mitra, WGC’s managing director for India and the Middle East. “India already occupies a unique position in the world gold market and, as private wealth in India surges over the next 10 years, so will Indian demand for gold.”
“In parallel to growth, socio and demographic challenges will need to be addressed given its immense diversity. This also applies to the gold market. Nevertheless, gold purchasing will continue, underpinned by India’s longstanding and deep cultural affinity for gold; a love affair that transcends generations and makes India unlike any other gold market.”