Mumbai: Following the higher duty and restrictions imposed on the import of gold, the World Gold Council (WGC) has revised downwards its annual demand forecast for India in the range of 850-950 tonnes against the previous estimate of 900-1,000 tonnes.
Over 200 tonnes would flow through the unofficial channel.
According to WGC, the gold demand during the quarter ended June 2014 plunged 39 per cent to 204.1 tonnes as compared to 337 tonnes consumed during the same period, last year.
“The second quarter of 2013 was an exceptional period as Indian consumers bought the yellow metal heavily following the sharp fall in the prices of gold. While the prices of gold were nine per cent lower during the April-June quarter, we didn’t see consumers rushing to purchase gold as seen during the year ago period,” said Somasundaram P.R., managing director, WGC.
However, he added that the import of gold through the unofficial channels would surpass 200 tonnes this year. “For the ultimate consumers, it is difficult to differentiate whether the gold that they are buying came from official or unofficial channels. It’s a big challenge,” he added.
During the first six-months of this year, Indians bought just 394.4 tonnes of gold, 33.65 per cent lower from 594.5 tonnes purchased during the same period last year.
With the impending wedding season and favourable monsoons, WGC expects the demand in the second half of the year to be normal.
He also added that unlike last year, World Gold Council is not seeing any anti-gold sentiment during this year.
