New Delhi: Gold demand in India, the wo rl d 's l a r g e s t consumer, declined by 83% in the first quarter of 2009 due to depreciating rupee and gloomy economic conditions, the World Gold Council has said.
Gold demand fell by 83% to 17.7 tonnes during January-March 2009 compared to the year-ago period.
"Total demand in India, traditionally the world's largest gold market, declined significantly under pressure from record rupee prices and a major deterioration in the domestic economy,'' a WGC statement said while releasing the 'Q1 2009 Gold Demand Trends' report. However, total demand for gold worldwide rose 38% to 1,016 tonnes valued at $30 billion in the first quarter of 2009.
The figures in the report compiled for WGC showed record investment in ETFs across the globe with demand soaring 540% at $14 billion. It said investment demand for gold, which includes ETFs and bars and coins, was the major source of growth in the quarter, reaching 596 tonnes, up 248%.
"Fears of future inflation and ongoing financial uncertainty saw investors continue to flock to gold in the first quarter of 2009, seeking out its proven wealth preservation qualities,'' WGC said.
The report also said impact of recession on consumer discretionary spending continued to take its toll on both jewellery and industrial demand.
Gold jewellery demand was down by 24%, with most countries suffering a decline as consumers responded to the high and volatile gold prices, which reached record levels in some countries, compounded by difficult economic conditions. However, China bucked the trend by recording a positive growth of 3% in jewellery demand, WGC said. AGENCIES
Gold demand fell by 83% to 17.7 tonnes during January-March 2009 compared to the year-ago period.
"Total demand in India, traditionally the world's largest gold market, declined significantly under pressure from record rupee prices and a major deterioration in the domestic economy,'' a WGC statement said while releasing the 'Q1 2009 Gold Demand Trends' report. However, total demand for gold worldwide rose 38% to 1,016 tonnes valued at $30 billion in the first quarter of 2009.
The figures in the report compiled for WGC showed record investment in ETFs across the globe with demand soaring 540% at $14 billion. It said investment demand for gold, which includes ETFs and bars and coins, was the major source of growth in the quarter, reaching 596 tonnes, up 248%.
"Fears of future inflation and ongoing financial uncertainty saw investors continue to flock to gold in the first quarter of 2009, seeking out its proven wealth preservation qualities,'' WGC said.
The report also said impact of recession on consumer discretionary spending continued to take its toll on both jewellery and industrial demand.
Gold jewellery demand was down by 24%, with most countries suffering a decline as consumers responded to the high and volatile gold prices, which reached record levels in some countries, compounded by difficult economic conditions. However, China bucked the trend by recording a positive growth of 3% in jewellery demand, WGC said. AGENCIES
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