Gold imports by India accelerated to the highest level in a decade last year as selling jewelry almost doubled, with the prospect of remaining bright demand, according to the world gold council.
The request was revived after two gloomy years when Indians once again flocked to the jewelry store in 2021 because of fear of pandemics subsided.
Marriage and celebrations were picked up in a full swing in three months to December, more than doubled the imports of a full year to around 925 tons, the highest since 2011, according to Board data.
“Starting 2022, you will see the request to prepare normal normal towards 800-850 tons,” compared to an average of 667 tons in five years to 2020, said PR Somasundaram, Chief Executive Officer for India in London-based in London.
The next few years will be the key as a reform and technology policy to let gold develop into a more transparent class asset class, he said.
The total demand for jewelry, coins and bars jumped 79% to 797 tons last year, data showed.
Covid-19 and its variants, global concerns about inflation, interest rates and geo-political developments will remain a factor to watch in 2022, he said.
The key number of WGC quarterly quarterly request trends: * Indian gold demand in the October-December quarter of December rose to a record high of around 344 tons, according to Somasundaram – sales of jewelry almost doubled to 265 tons and investment purchases rose 61% to around 79 Tons * Import rose 25% to 208.4 tons in the quarter