Indians buy gold ornaments to wear and gift during weddings as the precious metal is considered auspicious and a bringer of luck and prosperity.
Gold consumption in India will probably be the best in at least a decade in the current quarter as buyers stocked up for festivals in November and the peak wedding period that followed, according to the World Gold Council.
Indians buy gold ornaments to wear and gift during weddings as the precious metal is considered auspicious and a bringer of luck and prosperity. People were also encouraged to flock to jewellery shops by a recovery in consumer confidence as the economy gradually emerged from the pandemic.
“Weddings have come back in a big way. Almost every day there are weddings,” PR Somasundaram, regional chief executive officer for India at the council, said in an interview. Imports have been larger this year and prospects for overseas purchases remain positive as jewelry manufacturing continues to be very high, he said, adding “as of now it appears we will have another strong quarter of imports and demand.”
The outlook for consumption in 2022 remains strong unless there is another wave of the coronavirus in the country, he said.
Gross imports were about 400 tons last year and 703 tons from January to September this year.
With very little mining and modest levels of recycling, India is heavily reliant on bullion imports to meet domestic demand. About a third of the imports are in the form of gold ore for processing by the country’s 32 refineries, which face a challenge sourcing the ore as most don’t have assured suppliers, often relying on aggregators, Somasundaram said.