MUMBAI: The Koro crisis has seen a historic rise in gold prices, though demand has plummeted due to sharp rise in prices. During the World Gold Council (WGC) calendar year 2020, India’s gold demand fell sharply by 35 per cent to 446 tonnes, the lowest demand in 26 years, and gold demand in 1995 was 462 tonnes. So last year in 2019, the demand for gold in India was 690.4 tons.
In terms of quantity, the demand for gold has fallen sharply, although in value it has halved. Gold imports stood at Rs 1,88,280 crore in 2020, down 14 per cent from Rs 2,17,770 crore in 2019. In terms of the US dollar, gold imports to India have declined by 18 per cent. It may be mentioned that in the year 2020, the price of gold jumped by 40 per cent and reached a historic high of Rs 56,000.
Demand for gold jewelery fell by 42 per cent to 315.9 tonnes in calendar year 2020 from 544.6 tonnes in 2019. In terms of value, demand for gold jewelery stood at Rs 1,33,260 crore in 2020, down 22 per cent from 2019.
However, the demand for weddings has given some support to gold purchases and demand has increased in the December 2020 quarter. Demand for gold jewelery rose to 137.3 tonnes in the December quarter, the strongest quarter of 2020 in terms of gold demand. Gold investment demand rose 8 per cent to 48.9 tonnes during the quarter.
India’s total gold demand during the December quarter stood at 186.2 tonnes, down only 4 per cent from 194.3 tonnes in the December quarter of 2019. However, in terms of value, demand for gold rose 26 per cent year-on-year to Rs 82,790 crore in the December quarter, thanks to higher prices.