Page 16 - Bullion World Issue 11 March 2022_Neat

Bullion World | Issue 11 | March 2022
WGC: Gold Demand Trends Q4 & Full
Year 2021

We have never experienced such a growth in demand
that revalidated the strong social-economic footprint
of gold in the household portfolio and also reflected a
very strong broader economic recovery. At 344 towns
it exceeded even the most optimistic forecasts that
were given at the time of the 3rd quarter when we
saw the lockdown easing and things coming back to
normal.

A very important Insight that we gathered is that maybe
50,000 Rupees per 10 grams is now an accepted price
point. Just to give you a data point at the beginning
of 2019, it was around 30 or 32 thousand rupees per
gram. Today. It is 50,000 Rupees. That's the kind of
jump we have seen in two years in INR prices. But
now these prices seem to be an acceptable rate which
means the Mantra is less than 50,000 good to buy
more than 50000, watch, analyze and then take
action. So, the softer prices clearly were also a reason
for the quarter for overall jewelry demand, excellent
recovery. Manufacturing is way ahead of demand,
which also shows that there are huge positive traits
estimate.

Mr P R Somasundaram
Regional CEO, India, WGC

Source: Metals Focus, Refinitiv GFMS, World Gold Council

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