Demand for Gold Jewelry in India Hits Record
04.06.11
The World Gold Council has released its market analysis for 2010, and one of the conclusions in this report is that demand for gold jewelry in India and China contributed to a strong recovery in that sector, with annual demand up 17% from 2009. Consumers across Asia drove gold jewelry demand, and the Council expects that demand from China is expected to continue growing rapidly during 2011 as economic growth there remains strong.
Demand from India as well is likely to remain resilient. Overall gold demand hit a ten-year high last year, jumping 38% to a new record value. This is due in part to a structural shift in central bank policy towards gold. In 2010, central banks around the world become net buyers of gold for the first time in 21 years, and this has removed a significant source of supply to the market.