New Delhi: Demand for gold waned by 49 per
cent in the third quarter this year over the corresponding
period last year, thanks to a surge in its prices, the World
Gold Council (WGC) said today.
"In India,...the exceptionally strong Q3'08 levels saw
demand down by 49 per cent in Q3'09 comparisons" as high
prices and a poor monsoon impacted on consumer spending and
confidence, WGC said in a statement here.
Jewellery demand was also down by 42 per cent in the
third quarter at 111.6 tonnes as compared to the year-ago
period, it said adding that the net retail investment demand
was two-third lower at 26 tonnes.
However, the third quarter demand was 26 per cent higher
against the previous quarter, WGC said.
"Consumer and retail demand in India has been impacted by
the high local price levels witnessed in this quarter.
"Whilst consumers are still adjusting to a new, higher
pricing environment, there is still wide-spread awareness
about gold's role as a store of value and as a result we are
seeing less distressed selling as consumers look to preserve
their wealth in the face of ongoing economic uncertainty," WGC
CEO Aram Shishmanian said.
The total global gold demand for the third quarter 2009
reached 800.3 tonnes, or 24.7 billion dollar, which is up by
15 per cent from the second quarter, as gold’s long-term store
of value and wealth preservation qualities continued to
attract investors and consumers.
Bureau Report
First Published: Thursday, November 19, 2009, 19:40