World Gold Council: The World Gold Council has unveiled its latest report, titled “India Gold Market – Reform and Growth,” delving into key facets such as the drivers of Indian gold demand, jewellery demand and trade, jewellery market structure, gold investment market and financialization, bullion trade, gold mining in India, and gold refining and recycling.
As a membership organization dedicated to championing the strategic role of gold, the World Gold Council plays a pivotal role in shaping the future of a responsible and accessible gold supply chain. The council’s team of experts actively fosters understanding of gold’s use cases and potential through trusted research, analysis, commentary, and insights. By driving industry progress, shaping policy, and setting standards, the World Gold Council aims to establish a perpetual and sustainable gold market, as articulated by Juan Carlos Artigas, Global Head of Research, in the report’s foreword.
Artigas notes the substantial evolution since the council’s 2017 report, “India’s Gold Market – Evolution and Innovation.” The updated compendium delves deeper into crucial factors influencing India’s position as the world’s second-largest gold consumer. It meticulously examines the drivers of gold demand, consumer perceptions, the evolving investment landscape, and the intricate issue of gold supply.
The report acknowledges the profound impact of global events on societal and geopolitical stability since 2017, emphasizing India’s adaptive response as arguably unprecedented. Despite macroeconomic uncertainties, the report underscores India’s unwavering affinity for gold, especially during weddings and festivals, making it one of the world’s largest bar and coin markets. Gold continues to hold prominence in the social and financial lives of Indians, both urban and rural.
While the years ahead pose challenges, the World Gold Council sees tremendous opportunities for gold in India. Significant strides in regulating the country’s jewellery industry have built consumer trust. Exploring new export markets could mitigate the fragility of the current platform, where 90% of jewellery exports are concentrated in just five countries.
The prospect of more accessible banking opens avenues to reach investors navigating a myriad of choices. Furthermore, the report envisions the potential impact of initiatives such as the Gold Monetization Scheme, proposed legislative changes in the mining industry, and resolution of recycling traceability issues, all of which may reduce India’s dependence on imported gold.
Looking ahead with optimism, the insights in this report aim to ensure that gold not only retains but potentially increases its relevance to India’s economy. This involves generating additional employment and maintaining gold’s roles as an adornment and an effective portfolio diversifier and hedge against inflation.
