The Royal Mint analysed, India’s Demand Expected to Grow! India’s jewellery market is expected to grow by USD $21.54 billion between 2022 and 2027, driven by the cultural significance of gold jewellery, especially during weddings and festivals like Diwali. India is the world’s second-largest importer of gold, with gold considered a symbol of prosperity.
In Q3 2023, India’s gold demand surged by 10% to 210.2 tonnes, in contrast to a 6% global decline, with investment in gold bars and coins reaching the highest level since 2015.The preference for bars and coins over jewellery was attributed to a price correction.
However, near-record-high gold prices could dampen demand during the peak festival season, potentially resulting in the lowest purchase volumes in three years.
Consumers have accepted a higher price point, but substantial price drops closer to Diwali could change the situation. Despite this, India’s full-year gold demand for 2023 is predicted to be around 700 metric tonnes, slightly lower than the previous year’s 774.1 metric tonnes. The elevated gold prices have led to a surge in scrap supplies from individuals selling old jewellery and coins.