Introduction

As of February 2021, India’s gold and diamond trade contributed ~7.5% to India’s Gross Domestic
Product (GDP) and 14% to India’s total merchandise exports. The gem and jewellery sector is likely to
employ ~8.23 million persons by 2022, from ~5 million in 2020.
Based on its potential for growth and value addition, the Government declared gems and jewellery sector
as a focus area for export promotion. The Government has undertaken various measures recently to
promote investment and upgrade technology and skills to promote ‘Brand India’ in the international
market.
The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign
investor or the Indian company do not require any prior approval from the Reserve Bank or Government
of India.
Market size
In FY21, exports of gems & jewellery stood at US$ 25.30 billion. In March 2021, exports of gems &
jewellery stood at US$ 3.42 billion.
In September 2020, the US was the largest country (at 44%) to import gems and jewellery (US$ 938.54
million) from India, followed by Hong Kong (~33%) and the UAE (~13%).
In FY21, imports of gems & jewellery stood at US$ 16.49 billion. Imports of gold jewellery recorded US$
262.25 million from April 2020 to February 2021. 
The Government of India is aiming at US$ 70 billion in jewellery export in the next five years (until 2025),
up from US$ 35 billion in 2020. In FY21, gems & jewellery exports in India stood at US$ 25.30 billion.
In FY22 (until August), India exported gems & jewellery worth US$ 15.85 billion compared with US$ 5.57
billion in FY21 (until August).
In August 2021, India exported gems & jewellery worth US$ 3.28 billion compared with US$ 1.69 billion in
August 2020.
In August 2021, the GJEPC announced an ambitious target of raising exports of the sector to US$ 44
billion in FY22.
Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of
orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted
by GJEPC. In August 2021, the GJEPC announced an ambitious target of raising exports of the sector to
US$ 44 billion in FY22.
Investments/Developments
Cumulative FDI inflows in diamond and gold ornaments in India stood at US$ 1,194.00 million between
April 2000 and June 2021 according to Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the key developments in this industry are listed below:

 In September 2021, Malabar Group invested Rs. 750 crore (US$ 100 million) in a gold refinery and jewellery
unit in Hyderabad.
 In May 2021, GJEPC and Embassy of India, Morocco, co-hosted the ‘India Global Connect’ to better
understand the present business climate in the gems and jewellery sector and seek trade prospects for
manufacturers, exporters and importers from both countries.
 On July 20, 2021, the GJEPC held the 4th edition of ‘The Artisan Awards,' India's premier jewellery design
competition, at the Four Seasons Hotel in Mumbai. The competition's theme, ‘Reinventing Vintage’, featured
three different eras of jewellery from various cultures: Indian heritage was celebrated through the sub-theme
temple jewellery; Japanesque was a nod to Asian inspiration and Victorian was a nod to colonial history to
create timeless yet modern silhouettes. National and international participants from Japan, the US, Taiwan,
Russia, Egypt, Abu Dhabi, and Australia submitted a total of 586 entries.
 The GJEPC will organise its first International Gems and Jewellery Show (IGJS) outside the country, in
Dubai, from August 14-16, 2021. It will also hold a five-day physical exhibition—India International Jewellery
show (IIJS-2021)—in Bengaluru from September 15-19, 2021, in a first such event outside Mumbai. GJPEC
sources said that >250 buyers have registered and >95 stalls have been booked for Dubai IGJS 2021.
 There will be 150 booths having products such as plain gold, gold-studded jewellery, diamond-studded
jewellery, silver jewellery, loose diamonds and gemstones.
 Since May 2020, GIA India Laboratory Private Limited (an independent subsidiary of the Gemological
Institute of America, Inc., is the world's foremost authority in gemmology) has hosted >60 knowledge
webinars to equip the gem and jewellery trade with the most up-to-date industry knowledge and advance its
consumer protection mission. ~6,500 industry professionals from around the world attended these webinars.
o Participants (manufacturers, wholesalers, traders, retailers and professionals) gained important
information on gemmology topics such as ‘Navratna’, ‘Introduction to Laboratory-Grown Diamonds’,
‘April Birthstone: Diamond’, ‘September Birthstone: Sapphire’, ‘November Birthstones: Topaz &
Citrine’ and ‘The Big 3 – Ruby, Sapphire and Emerald’. These diversified gemmological topics
helped attendees gain valuable information to buy and sell gemstones with confidence.
o In June 2021, Tanishq launched antimicrobial jewellery in certain markets as a pilot project.
Currently, the range is available in stores across Chennai and Lucknow, with further launches
planned in Kolkata and Hyderabad followed by other key markets. Antimicrobial jewellery is being
offered in categories such as chains and rings, which feature special-coated layers that self-
disinfect the surface and impede any further microbial growth.
 In June 2021, the World Gold Council and Gem and Jewellery Export Promotion Council signed an
agreement to promote gold jewellery in India. Under the agreement terms, both partners will jointly fund a
multi-media marketing campaign that would aim to increase awareness, relevance and adoption of gold
jewellery amongst Indian consumers, especially in millennials and Gen Z.
 In April 2021, Malabar Gold & Diamonds announced to invest Rs. 1,600 crore (US$ 214 million) in FY22 to
launch 56 stores, of which 40 would be in India and 16 across global markets. In India, stores will be opened
in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Delhi, West Bengal, Uttar Pradesh,
Odisha and Kerala. In July 2021, the company announced hiring of >5,000 staff, across its retail operations,
brand headquarters and regional offices in the country.
 In March 2021, Joyalukkas collaborated with IBM Global Business Services to design, develop and deploy a
new cloud-native e-commerce platform across 11 countries including India, the UAE, the US, the UK,
Singapore, Malaysia, Bahrain, Qatar, Saudi Arabia, Kuwait and Oman.
 In February 2021, Reliance expanded its e-commerce arm, JioMart, to jewellery with silver coins of 5gm
and10 gm, and gold coins of 1gm, 5gm and 10gm.
o Reliance's in-house jewellery brand, Reliance Jewels, which has ~93 flagship showrooms and 110
shop-in-shops in 105 cities in the country, will fulfil the orders for the new segment.
 In November 2020, Platinum Guild International (PGI) launched their new 'Men of Platinum’ collection for
men in leading retail stores across India.
 Jewellery players in India are re-evaluating the brick-and-mortar business model and planning to implement
omni-channel approach with focus on digital strategy to boost sales.
 According to the ‘Online Gold Market in India’ report by The World Gold Council, the online gold market in
India, with relatively nascent at 1-2% (as of 2020), is witnessing a strong push from both digital players who
view this market as an opportunity and large jewellers who view this market as a required addition to their
brick-and-mortar model.
 Maximum development was driven by MSEs in gems & jewellery and textiles. In November 2020, adoption
of digital distribution platforms among manufacturers of gems and jewellery, manufacturing mostly non-
precious, stone-studded jewellery, imitation jewellery and luxury fashion jewellery, more than quadrupled to
 55% from 13% before the pandemic. The segment's micro enterprises recorded the highest boost of 41%,
from the previous 13%.

Government Initiatives

 In September 2021, Union Minister, Ms. Anupriya Patel, said that reforms such as the revamped gold
monetisation scheme, reduction in import duty of gold, hallmarking and others would help the industry grow.
The market export target is US$ 43.75 billion for 2021.
 The government has reduced import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum & Pallidum
(from 12.5% to 10%) to bring down the prices of precious metals in the local market.
 Indian Government made hallmarking mandatory for Gold Jewellery and Artefacts. A period of one year is
provided for implementation i.e. till January 2021.
o In December 2020, All India Gem and Jewellery Domestic Council (GJC) welcomed the decision to
make hallmarking compulsory from June 2021 in a phased manner; urged the government to
examine the key concerns of the industry for smooth implementation of the initiative.
o Hallmarking of gold jewellery is set to begin from June 15, 2021. In view of the COVID-19
pandemic, the government accepted request of stakeholders to provide jewellers some more time
to prepare for implementation and resolve issues. Earlier, the date of implementation was June 01,
2021.
 In December 2020, the Finance Ministry notified that the amendment under Prevention of Money Laundering
Act (PMLA), notifying dealers in precious metals and stones, will maintain records of cash transactions worth
Rs. 10 lakh (US$ 13.61 thousand) or more cumulatively with a single customer.

Road Ahead
In the coming years, growth in gems and jewellery sector would largely be contributed by the
development of large retailers/brands. Established brands are guiding the organised market and are
opening opportunities to grow. Increasing penetration of organised players provides variety in terms of
products and designs. Online sales are expected to account for 1–2% of the fine jewellery segment by
2021–22. Also, the relaxation of restrictions of gold import is likely to provide a fillip to the industry. The
improvement in availability along with the reintroduction of low-cost gold metal loans and likely
stabilisation of gold prices at lower levels is expected to drive volume growth for jewellers over short to
medium term. The demand for jewellery is expected to be significantly supported by the recent positive
developments in the industry.

Younger consumer may prefer 18 and 14 carat

gold jewelry in India
Posted by Frontier India News Network  Finance & Markets
Experts anticipate that the jewelry market in India is en route to make significant structural changes
in the near future with pundits predicting the overall market share for lower carat and light weight
jewelry. 18 and 14 carat jewelry in India will soon emerge as a dominating force in the market
challenging the long reign of the 22-carat gold in the Indian market. The Covid-19 pandemic along
with a combination of economic, demographic, and cultural factors have been identified for this
potential change.
India is known for its profoundly traditional market for gold jewelry in which wedding and festive
purchases serve as the catalyst for demand and supply. Combined they account for 60-65% of total
consumer purchases. It is in this backdrop that 22-carat plain gold jewelry singlehandedly dominates
the market in the present market environment.

Advertisement

However as aforementioned rising prices, evolving customer behaviour patterns and everchanging
demographics have led to major shifts in the market structure, an impact of which can be witnessed
in the evolution of product segmentation and weights. The past five years have seen market prices
surge over half of what it was in 2016.

This has caused customers in India to plan their purchased with a fixed budget in mind and remain
within those limitations. The surge in the price of jewelry has altered the longstanding product
choice, with customers increasingly switching over to lightweight jewelry options or reduce their
overall purchase all together.

As per Metals Focus, market research in India has revealed that there has been an average 10%
reduction in the weight of jewelry. Wedding sets in particular have felt this weight reduction.
Factoring in the rise in the price of the Indian Rupee (INR) and the scourge of the Coronavirus
pandemic, market pundits forecast that this trend will only continue at a far more rapid pace this year
and will continue to have a bearing on a customer’s budgetary considerations.  

Significant alterations in product segmentation have also been seen. This has especially been the
case for bridal jewelry, which despite being a vast market category has suffered a major setback in
terms of overall sales since 2016. A factor identified for this change have been the evolving
dynamics of Indian weddings.

Marital celebrations are gaining far more prominence, with added small-scale events like bachelor
parties, musical nights and hiring of profession wedding photographers and videographers both for
both pre-during-post weddings. These practices have become the norm in Indian wedding culture.
Adding to this is the prevalence of destination weddings and honeymoons abroad.
These new types of wedding expenditures accumulate and take away from the overall wedding
budge. Budget previously allocated for purchase of bridal jewelry has now been diverted to meet
other wedding expenses.

It has also been found that the market share for daily wear jewelry has soared from an estimated 35-
40% to roughly 40-45%. This is said to be driven by the strength in the gold price and a rising youth
demographic in India with more than 50% of the country’s population below the age 35 years of age,
and have shown a preference towards lightweight jewelry, for its lack of heft and increased
affordability.

Going by International Labour Organisation figures, women currently account for just 20% of India’s
work force however these figures are expected to rise and with it the share of daily wear jewelry is
also expected to rise with the increase of more women in the work force and a market increase in
lightweight 18 carat gold jewelry being the dominant range.  

As aforementioned, the Indian jewelry market is currently dominated by the 22 carat, making around
80% of retail sales by weight. However increasing gold prices and a below 35 demographics is likely
to encourage buying of lower purity products. These trends have already been felt by the market in
Indonesia and Vietnam and have been driven broadly by the same factors.

old Demand Trends Full year and Q4

2020
28 January, 2021

Jewellery
Jewellery demand in 2020 dropped to its lowest annual level on
record, decimated by the combination of the global pandemic – with
its resultant market lockdowns – and record high gold prices at a
time of economic slowdown.1

 Total annual jewellery demand dropped to 1,411.6t, the lowest in our annual data series
and 34% lower y-o-y
 At 515.9t, Q4 demand extended the sequential quarterly recovery from Q3, but was
nonetheless 13% weaker y-o-y (compared with an already relatively soft Q4 2019) and
the lowest Q4 in our quarterly data series
 The two largest markets, India and China, were the two major contributors to the annual
decline.

Tonnes 2019 2020   YoY

World total 2,122.7 1,411.6 -34%

 Tonnes 2019 2020   YoY

India 544.6 315.9 -42%

China, P.R.:Mainland 638.0 415.6 -35%

Although jewellery demand showed continued signs of quarterly recovery from

the lows reached in Q2 when market lockdowns were at their peak, it remained
very weak in Q4. Global demand clambered back above 500t in Q4, but not
convincingly: 515.9t is the lowest Q4 in our 21-year data series. On an annual basis,
demand collapsed to 1,411.6t – a 34% drop from 2019.

In light of gold’s strong price performance during the year, the value measure of
jewellery demand was far more resilient. In US-dollar terms, demand in Q4 grew 11% to
US$31.1bn – the highest quarterly value since Q2 2013. After a very weak H1, in which
– despite higher average gold prices – the value of jewellery demand fell to an 11-year
low of US$29.6bn, H2 witnessed a sharp recovery to US$51.6bn – a rise of 3% y-o-y.
The steep increase in the amount that consumers were prepared to spend on gold
jewellery could be indicative of diverting expenditure away from experiences (such as
travel, restaurant meals, theatre tickets, etc.) towards consumer goods. Such trends
were noted in some markets. 

While jewellery demand volumes are likely to remain relatively subdued as COVID-19
continues to impede the normal functioning of many markets across the globe, mass
vaccination programmes and signs of improving economic indicators imply that we
expect to see continued, if tentative, improvement in the sector in 2021. 

While India and China together generated much of the annual decline in gold jewellery
volumes, they were similarly influential in driving the quarterly improvement in Q4.
Meaningful recovery in either market will bode well for global demand as we head into
2021.

COVID-19 thumped annual gold jewellery demand 

TonnesTonnesDownloadJewelleryJewellery value
(rhs)19952000200520102015202005001,0001,5002,0002,5003,0003,50002040608010012014
0

Sources: ICE Benchmark Administration, Metals Focus, Refinitiv GFMS, World Gold
Council; Disclaimer

Note: Data as of 31 December 2020. Jewellery value is calculated by multiplying the

tonnage figure and the annual average LBMA Gold Price PM in US dollars. Note: For an
explanation of jewellery demand, please see the notes and definitions
download: www.gold.org/goldhub/data/gold-supply-and-demand-statistics.
 

China
Traditionally a seasonally strong period for gold demand in China, Q4 demand of
145.1t was 10% lower y-o-y. 2 Although China’s economy recovered further in Q4,
registering 6.5% y-o-y GDP growth, the high gold price and regional COVID-19
outbreaks in some areas weighed on demand. Full year demand fell by a sizable 35%
to 415.6t – the lowest annual total for China since 2009. 

Throughout 2020, China’s jewellery market has been buffeted on two fronts. On
one hand, the economic damage and restriction on social activities wrought by COVID-
19 in Q1 left a lasting dent in annual gold jewellery demand. And on the other hand,
structural changes – including retailers reducing their inventories, industry consolidation
reducing jewellery retailers’ point of sales in general and the continued shift in young
consumers’ preference towards lighter products – also played a role in weakening gold
jewellery demand. 

Heritage gold jewellery products outperformed other categories in the last quarter and
performed strongly in 2020 overall. With their intricate craftsmanship and inclusion of
traditional cultural elements, these products grew in popularity – particularly among
high-end consumers whose incomes were less impacted by the pandemic. In addition,
pent-up wedding demand, also supported demand for these well designed, Chinese
culture-embedding products.

Lightweight hard-24K gold jewellery products with trendy designs maintained

their significance in China’s gold jewellery market in 2020. To some extent, the
economic slowdown had a relatively positive impact on the popularity of these products;
as they are more affordable and trendier than traditional items they were able to
maintain their appeal to consumers, especially young consumers with limited budgets.
In addition, many jewellers restructured their inventories towards lighter hard-24K
products in order to lower their costs of capital during the economic hardship of 2020.
Realising the potential shortcomings of ‘per-piece’ pricing (which may not give
consumesr enough clarity on fine gold weight and labour charges), some jewellers
started to price these hard-24K gold jewellery products by grams, hoping to win
consumer trust – our consumer research identified a lack of trust in the purity of gold as
a key barrier to gold jewellery purchase in China. 

Looking ahead to 2021, our fieldwork indicates an optimistic attitude among major
jewellers in China, who experienced strong sales in recent months. The main reasons
behind the more positive outlook over the coming months are:

 The expectation of continued strength in China’s economy, leading to faster growth in

consumer disposable income;
 Chinese policy makers have positioned domestic consumption as a priority in coming
years;
  Industry consolidation in 2020 weeded out jewellers with weak brand value and
problematic cash flows, putting the industry in a healthier position, and
 COVID-19 is widely expected by those in the trade to remain well contained in China.

India 
2020 marked a new low for Indian gold demand in our data series: down 42% to
315.9t. Losses narrowed significantly in the fourth quarter, with demand just 8% lower
y-o-y at 137.3t, a significant q-o-q improvement. In local currency terms, the value of
Indian gold jewellery demand reached a quarterly record of Rs610.6bn, a sharp
recovery from the 12-year low of Rs183.5bn in Q2.

With the easing of lockdown restrictions from September and a reported steady
reduction in COVID-19 daily cases, some positive signals of domestic economic
recovery came through in Q4. Together with the sharp pullback in the domestic gold
price, these factors supported the quarterly recovery in gold jewellery demand. The
reopening of the economy and the announcement of successful vaccines also boosted
consumer sentiment – the Reserve Bank of India’s Consumer Confidence Index
increased to 52.3 in November 2020 from 49.9 in September. 3 Underscoring the pick-up
in economic activity, Goods and Sales Tax (GST) revenues reached a record high of
Rs1.15tn in December – the highest since the tax was introduced in 2017. 4

The average gold price for Q4 at Rs50,195/10gm was 32% higher y-o-y but 2% lower q-
o-q and 10% below the all-time high of ~Rs56,000/10gm from early August. The
correction in the local gold price to back below the key psychological level of
~Rs50,000/10gm for much of December spurred bargain buying and pent-up demand. 

Festivals and weddings in Q4 offered the traditional seasonal boost to jewellery

demand, although it remained soft on a historical basis. With the end of Adhik
Maas on 16 October, sales picked up during Navratri.5   And during Dhanteras –
considered to be an important gold purchase festival – footfall and gold jewellery
volumes improved still further, exceeding local industry expectations. 6 Some retailers
adopted a strategy of spreading Dhanteras promotions over a couple of days to avoid a
rush and help maintain social distancing during the festival. The correction in the gold
price during the week of Dhanteras helped demand, but a 32% higher gold price y-o-y
was a deterrent for some and, overall, Dhanteras volume sales were lower y-o-y.

Pent-up demand from weddings deferred from earlier in the year and rescheduled for
Q4 also provided a fillip to jewellery demand. But, with higher gold prices, consumers
preferred gold-for-gold exchange for wedding purchases. Commenting on the
performance for Q4 2020, Titan in its quarterly update released on 6 Jan 2021 said, “…
the growth trend was visible even after the festive season ended… The division has
continued to see…very good growth in wedding jewellery sales…and higher share of
wedding related products...”.

Resilient rural demand helped support quarterly recovery. Rural demand received

a boost in the fourth quarter from a good monsoon, with rainfall 9% above the long-term
average. Furthermore, relatively low COVID-19 infection rates, higher minimum support
prices for crops and expectations of higher Kharif food grain production (0.8% higher y-
o-y) also buoyed the rural economy.7 Indicative of the relative health of the rural
economy, India’s leading tractor manufacturer Mahindra & Mahindra reported increases
in domestic sales of tractors during November and December of 55% and 23%
respectively. Gold jewellery retailers in tier2 and tier 3 cities, where economic activity is
more dependent on agricultural and allied activities, reported better volume sales in the
quarter. 

Despite the economic improvement in Q4, some indicators point towards the recovery
being fragile and not yet broad-based. Bank credit growth remained relatively soft and
Industrial Production shrank by 1.9% in November after two months of consecutive
growth.8 This suggests that any continued quarterly improvement in jewellery demand is
likely to be tentative. Indian consumers remain sensitive to changes in the gold price –
particularly at such historically high levels – and this could generate a rapid response to
any price volatility, especially around the psychological Rs50,000/10gm level. 

India and China down but not out as Q4 sees quarterly recovery

TonnesDownloadRest of
WorldChinaIndiaQ1'14Q1'15Q1'16Q1'17Q1'18Q1'19Q1'200100200300400500600700800

Sources: Metals Focus, World Gold Council; Disclaimer

Note: Data as of 31 December 2020. For an explanation of jewellery demand, please

see the notes and definitions download: www.gold.org/goldhub/data/gold-supply-and-
demand-statistics.
 

Middle East and Turkey

Gold jewellery demand in both Turkey and the Middle East slumped by around 30% in
2020 to their lowest annual levels in our data series. 

Turkey was one of the few markets not to see a notable q-o-q uplift in gold jewellery
demand in Q4. Demand reached 6.8t – up 3% from Q3, but down 25% y-o-y. Gold price
movements helped to explain the relatively subdued quarter, as the local gold price in
Turkey followed a different trajectory to the US$ price. Significant lira depreciation
between August and early November pushed the local price to an all-time high of
TL540/g – an increase of around 86% from the start of the year. Unsurprisingly, gold
jewellery demand was subdued as a result.

The appointment of a new central bank governor in November – and hefty interest rate
hikes shortly afterwards – boosted the lira and saw gold prices drop back, settling at
around TL290/10gm by the end of the year. Unfortunately, this also coincided with
curfews imposed in December to combat an uptick in COVID-19 cases, which
negatively impacted consumer sentiment.

Markets across the Middle East saw double-digit declines in annual demand, with Q4
also seeing some sizable y-o-y losses as the economic impact of the pandemic,
together with high gold prices, continued to weigh on demand. Demand in the UAE in
Q4 fell 20% y-o-y, but jumped 80% q-o-q thanks to a return of some degree of tourist
demand and decent festival buying as the gold price dropped. Saudi Arabia saw the
steepest y-o-y decline in Q4 (-26%), due to the continued impact of VAT being levied on
gold jewellery. 

The West
Gold jewellery demand in the US totalled 118.2t for the full year, 10% lower than 2019.
The decline was, unsurprisingly, driven by damage to income and sentiment from
COVID-19. Fourth quarter demand of 48.7t was relatively robust, down just 1% y-o-y
due to the release of some pent-up demand from earlier quarters and spending being
diverted from travel and dining out. However, the quarterly uplift from Q3 (+73%) was in
line with average Q3-Q4 growth over the previous five years, so does not represent an
unusually strong recovery. 

A review of jewellery in value terms reveals a more positive picture for the US in Q4,
with high gold prices helping demand jump to a quarterly record of US$2.9bn.

It should be noted that US demand figures could be subject to greater than normal
revisions going forward, due to varying levels of uncertainty in the data from different
sources amid COVID-19 disruption.

Having averaged 75t over the prior eight years, gold jewellery demand in Europe
dropped 21% to 56.7t in 2020 amid the chaos wrought by COVID-19. The cancellation
of weddings, naming ceremonies such as christenings, and similar events had a
material impact. 

Other Asia
Annual gold demand among the smaller markets in Asia was, without exception, well
below 2019 levels. Q-o-q recoveries were universal across the region in Q3 and Q4, but
were insufficient in magnitude to reverse H1 weakness. 

Thailand and Indonesia posted the steepest losses, with annual demand only around
half that of 2019 levels. High local gold prices – which encouraged Thai consumers in
particular to sell back their existing gold – together with the economic impact of COVID-
19 explained the drop. Japan and South Korea saw the smallest y-o-y declines, of 19%
and 16% respectively. Countries across the region were on high alert for a possible
second wave of infections – a further burden on consumer sentiment already weighed
down by widespread economic slowdown and high gold prices. 
Footnotes
1. The annual data series for Gold Demand Trends goes back to 1995 and our
quarterly data series starts in Q1 2000. Where we quote record numbers in
annual or quarterly gold demand, they are in relation to these respective data
series. Gold ETF data is available from 2003, when the first funds were
introduced. 

2. The ‘Golden week’ national holiday in Q4 is traditionally a popular time for

weddings, while consumers also buy gold jewellery – both for gifting and as a
symbol of good luck – in preparation for the most important festival in the
Chinese calendar, the Lunar New Year.

3. Reserve Bank of India - Publications (rbi.org.in)

4. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1685332

5. Navratri is a Hindu festival which spans nine nights and is celebrated as a mark
of victory of good over evil. in 2020, Navratri was celebrated in India from 17 to
25 October. It is a popular gold jewellery shopping occasion. Adhik Maas is an
extra month in Hindu calendar occurring every 32.5 months and is considered
inauspicious for gold jewellery purchases. In 2020, Adhik Maas ran from 17
September to 16 October. 

6. Dhanteras is the first day of Diwali, one of the most important festivals in the
Hindu calendar and a traditional gold purchase occasion

7. India has two main cropping seasons: Kharif and Rabi. Kharif crops are sown
during the summer monsoon, beginning with the first of the rains in July, and are
harvested in the winter. Rabi crops are sown during the winter months, with a
spring harvest.
In the former, more than 40% of consumption is in the form of 9 and 10-carat jewelry, whereas in the
latter 14 and 18-carat together account 40-45% of retail sales. While Bureau of Indian Standards
(BIS) regulations may be a deterrent factor in the sales of jewelry below 14-carat, lower purity
jewelry should continue to gain market prominence despite 22-carat remaining the dominant product
in the Indian market.

Share this:

 Print
 Reddit
 Telegram
 WhatsApp
 Pinterest
 Pocket
 Skype


Related
Gold jewellery sale drops, investment and price rises amid COVID-19
Going forward, as the COVID-19 cases increases in India and the world, the use of face mask and
head coverings will result on the decline in gold jewellery sales as it does not perform the role as
fashion accessory and status.

2020-07-25
In "Finance & Markets"

Indian Gold ETF’s on a four year high at 23.9 tons

 The Modi government's knee jerk imposition of the nationwide lockdown on 25th March to contain
COVID-19 Pandemic has resulted in near decimation of an already failing economy. Like the
majority of the products, the sale of physical gold has crashed too. However, the rise of the price of
gold around…

2020-08-28
In "Finance & Markets"
India increases import of Russian coal as steel production increases
Russia has increased the supply of coal to India, which has declared its readiness to import 40
million tons of raw materials annually. Sibanthracite Group, the Russian producer of high-quality
UHG anthracite and metallurgical coal, reported a 140% increase in supplies to India. Russia caters
to only 2.5% of Indian…

2021-07-18
In "Finance & Markets"