Retail consumers drive Gold demand in India | Gold and What Moves it. | Scoop.it
India's gold demand surged 41% in the fourth quarter of calendar year 2012. World Gold Council (WGC) data showed the countrys demand at 262 tonnes in the quarter, compared with 185.5 tonnes in the corresponding period previous year.

 

By Dilip Kumar Jha
Retail consumers unabated appetite to own an additional piece of gold has so far nullified the governments efforts to curb its import, in order to control the burgeoning current account deficit (CAD).

India's gold demand surged 41% in the fourth quarter of calendar year 2012. World Gold Council (WGC) data showed the countrys demand at 262 tonnes in the quarter, compared with 185.5 tonnes in the corresponding period previous year. Despite the governments four-fold rise in customs duty to discourage gold import, there was only a 12% decline through 2012, at 864.2 tonnes, compared with 986.3 tonnes in the previous year.

Indias gold demand is largely driven by a combination of retail and urban consumers. ...