 Demand for gold jewellery, which accounts for almost 40 percent of the global demand, has considerably gone down owing to rising and volatile gold prices.
Gold prices have skyrocketed from Rs6,172 in April 2005 to Rs9,579 per ten grams around now.
In terms of weight, the gold jewellery demand has steeply declined by 43 percent in first quarter of this fiscal as compared to the same period last year.
In terms of value, the demand in the country has fallen by 13 percent during the quarter. Internationally, gold jewellery consumption has declined by 16 percent due to volatility.
Interestingly, overall demand for plain gold has gone up all over the world. The demand has risen by 36 percent in India, while it has climbed by 23 percent during the quarter.
Out of the 1,200 tons of gold consumed annually in India, 700 tons is used for making jewellery. |