Ahmedabad: To meet cash requirements amid economic uncertainty triggered by pandemic, 20% of the sale of Indian Memo gold takes place from Gujarat, suggesting estimates by the Association of Bullion and Indian Jewelry (IBJA).
According to the latest Gold Demand Trend (GDT) report by the World Gold Council (WGC) which was launched on Thursday, 111.5mt Scrap Gold Sale in exchange for cash reported from April 2020 to June 2021.
This, IBJA experts estimate that 22mt Gold – Both Bullion and jewelery – sold by people.
“People lose their jobs or sources of income dry out because of the economic chaos caused after locking.
For pillows of personal financial needs, many sell their gold and gold jewelry since the pandemic.
At least 20% of the former gold sales in the country come from Gujarat, “said Haresh Acharya, Director, Ibja.
Gold sales of scraps more than and above the 120 MT gold estimate are traded in exchange for gold, according to WGC experts.
“Gold recycling has jumped 15% in India because of a pandemic because people need money to maintain their expenses for personal and medical requirements.
With a surge in yellow metal prices, many also sell gold for profit orders too,” said Somasundaram PR, Managing Director, India , WGC.
“The spirit and spread of the second wave of Covid-19 in all Indian ruralists has an impact on the income level.
Many rural consumers turn to gold to meet medical costs during the pandemic, forcing selling gold pressure,” said the latest GDT report.
Interestingly, gold recycling saw a 33% significant increase in the first quarter of 2021-22 I.e.
April to June this year when the second wave Covid-19 struck, according to the report.
In addition to disabling gold, a significant increase was seen in absorption for gold loans too, said Somasundaram.
“The people here have sentimental values ​​attached to gold and hence, they don’t want to part with gold.
Thus, gold loans also witnessed phenomenal absorption.
Better returns because of high gold prices and as RBI increases the loan ratio to value up to 90 %, people can get a loan by pawning gold, rather than selling it, “he said.
Bullion traders here say that the majority of people who sell gold or seek gold loans come from rural India, and do it especially during the second wave of pandemics to meet medical expenses.