The World Gold Council estimates have put the quantum of gold held by Indian households at around 20,000 tonnes. India, no doubt has a long history with gold, and thus it is no surprise that Indians hold the largest stock of gold in the world.
As per the Industry Survey 2012 by The Hindu, about 15 million weddings per annum will take place in India over the next decade. Owing to the fact that 50% population here is under 25 and gold being an integral part of marriage ceremonies, an approximate 500 tonnes of new gold per annum will be added to India.
Jan 2011 – September 2011:
- Jewellery demand dipped to 464.4 tonnes (472 tonnes)
- Due to high prices, the demand went up by 26% in value terms
- Investment demand for gold increased by 25.5% in volume terms to 296 tonnes (236 tonnes) and 60% in value to Rs. 660,376 crore (Rs. 410,763.6 crore)
- Overall demand went up by 7.45% in volume terms to 760.4 tonnes (708 tonnes) while in value it rose by 37.6 % to Rs. 1,696,452 crore (Rs. 1,232,813 crore)
- India’s agriculture sector (which is 70% of India’s population) has been the source for two-thirds of gold demand.
- Despite a 400% rise in the rupee gold price in the last decade, gold demand from Indian consumers has shown no signs of dwindling.