WGC Foresees Notable Surge in Indian Gold Jewellery Demand

SEATTLE (Scrap Monster): The World Gold Council (WGC) announced publication of latest India Gold Market Series, which focuses on gold jewellery market demand and trends in the country.

The report cited weddings, religious festivals and agriculture as the primary driving factors of gold jewellery demand. The Indian gold jewellery landscape is dominated by bridal gold jewellery, accounting for nearly 50-55% of the total market share. The two major gold purchase occasions in the country are wedding and festivals such as Diwali and Akshaya Tritiya. Also, gold continues to remain as the most preferred form of investment for rural population, whose income mainly depend on agriculture.

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Incidentally, the country is the world’s second-largest consumer of gold jewellery. The report divides the Indian jewellery consumption into three main categories- bridal, daily wear and fashion jewellery. The country is a major exporter of gold jewellery as well. According to the WGC report, the U.S. has surpassed the UAE to become the largest destination of Indian gold jewellery.

Looking ahead, the gold jewellery demand in India is expected to benefit from strong economic growth and growing urbanization, though amidst challenges posed by demographic changes and the fear of millennials moving away from gold and other luxury items.