Gold Jewellry Demand Down 21 Percent in 2Q, But Product Down Too

Source:

The World Gold Council said in its Gold Investment Digest that anecdotal reports from its regional office in Mumbai and preliminary data on Indian imports showed there had been a strong revival in Indian demand in the third quarter and widespread reports of shortages of gold in the retail sector.

The World Gold Council reports that gold jewellery demand fell 21 percent year on year in the second quarter, but anecdotal eveidence suggests a sharp pick up in the third quarter.

The gold price drove demand for jewellery 21% down in the second quarter of this year compared to the second quarter of 2007. This came as the gold price remained high and volatile and inflation spread across the world.

The World Gold Council (WGC) said in its Gold Investment Digest that although jewellery demand recovered from the depressed levels of the previous quarter to reach 504.5 tonnes in the second quarter, it was still significantly lower than it was in the same quarter a year earlier.

The Digest said the primary factor driving demand lower during the quarter was the gold price. The volatile price had the "most notable" effect in India, the world's largest market for gold jewellery..<.br>
The Digest added that anecdotal reports from its regional office in Mumbai and preliminary data on Indian imports showed there had been a strong revival in Indian demand in the third quarter and widespread reports of shortages of gold in the retail sector.

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