India’s gold investment demand tops jewellery for the first time ever in March quarter

Investment demand in the March quarter surged 52% from a year earlier to 82 metric tons, while jewellery demand fell 19.5% to 66 tons, the World Gold Council (WGC) said in a report published on Wednesday. According to the data, total gold consumption in the country rose 10.2% to 151 metric tons during the quarter. For the first time, investment demand accounted for a larger share of total consumption than jewellery, rising to 54.3% in the quarter.

India’s investment demand for gold surpassed jewellery consumption for the first time on record in the March quarter, as investors turned to the precious metal amid subdued equity market returns, the World Gold Council (WGC) said. Stronger investment demand in the world’s second-largest consumer of gold partly offset a decline in jewellery buying, which was hit by a price rally, helping to keep overall demand stable, the WGC said.

“For the first time investment demand surpassed jewellery demand,” Sachin Jain, chief executive of the WGC’s Indian operations, told Reuters. “Investment demand will become increasingly prominent in the coming quarters, with both financial and retail investors showing more interest in gold.”