India is a country that has a fervor for gold and the storage in our bank lockers is one such example where gold is not considered a commodity, it is rather taken as an investment. Gold consumption in India over the year dropped down but this year India beats China in gold consumption with 642 tonnes of gold in the first nine months of this year.
Well, China that was turbulent with its gold establishment has total consumption of 579 tonnes in the first nine months which is trailing from India with 63 tonnes of gold according to GFMS Gold Survey Q3 2015 Review and Outlook.
Jewelry consumption in India increased by 5 % year on year and by now with this nine months India has beaten its competitor in gold consumption. With an estimated 193 tonnes in Q3 2015, the highest quarterly consumption since Q1 2011 and the highest third quarter demand since 2008, the report published by Thomson Reuters stated.
As per the reports -The retail investment also rose by 30% year on year to 55 tonnes, which accumulates to the highest since Q4 2013. The increase in demand in the third quarter is primarily attributed to the fall in local gold prices to the lowest since August 2011.
The total official gold imports to India in the third quarter increased by 23% to 263%, which is the highest quarterly volume year-to date. In China, after a lack lustre second quarter this year, which was the lowest second quarter recorded since 2011, gold demand rebounded in the third quarter.
Coming to the demand of this precious metal which seems to be rising in the Chinese market during the Chinese Valentine’s Day in August and the Autumn Festival in September, it passed down as a great factor. The seasonal demand triggers gold requirement even after the mid July breakdown of gold price by $1,100.
Another reason that boosted the gold demand is the sudden breakdown of Yuan in August which enhanced the demand of gold in the market.
India is pushing towards this precious metal consumption and the the new policies which are coming in the market also looking for marking a change in the economy.
