The bumper festival season may help push India’s gold imports to as much as 900 tons this year
Published On: Thursday, December 16, 2021 | By: Team KnowMyStock
A flurry of weddings is seen as couples rush to tie the knot following a lifting of some virus curbs. About 2.5 million ceremonies are estimated to have taken place since mid-November, around a quarter of this year’s expected annual total, after the government eased some restrictions around gatherings. It’s a stark turnaround for India’s jewelers, who have seen demand hammered for almost two years as the coronavirus led to the postponement of many weddings while broader financial hardship further curbed purchases. The bumper festival season may help push India’s gold imports to as much as 900 tons this year, the highest in six years, Metals Focus Ltd said. That’s up from about 350 tons last year, according to World Gold Council figures.
“Lower prices and pent up demand has helped boost sales, but we are also seeing a lot of weddings this year with some estimates suggesting that we could have a record number,” said a consultant with Metals Focus. “What has happened in the past year and a half has revived people’s faith in gold.”
India is the world’s second-biggest gold consumer and imports almost all the metal it consumes. Purchases typically peak in the festival quarter of October to December, and the World Gold Council has previously estimated sales in the period will be the best in at least a decade.
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