India’s gold demand set to revive in 2017 - WGC

According to a latest report published by the World Gold Council (WGC) late-Wednesday, the demand for gold in India is set to revive this year after 2016 ended on a dismal note on rising gold prices and demonetization impact.

Key Quotes:

“It’s clear that India’s gold market faces short-term headwinds”

“But looking ahead, these policies promise to deliver a stronger and more transparent economy. This will support gold demand, which we expect to be between 650-750t in 2017”

“Over time, we anticipate that economic growth and greater transparency within India’s gold market will push demand higher: by 2020 we see Indian consumers buying between 850t and 950t” 

“Demonetisation is also boosting large jewellery retailers, and they will continue to grab a larger share of the market. Over time, consumers will move away from cash towards digital payments, and organised players should benefit from this trend. This change in market dynamics will result in more transparency and a better deal for consumers, protecting them from shady practices such as under–carating”