India’s gold demand is set to surpass 750 tonnes in 2024, nearing the 761 tonnes recorded in 2023, according to Sachin Jain, regional CEO for India at the World Gold Council (WGC). Jain highlighted that current gold prices are elevated due to strong demand, and anticipates a particularly robust Q4, driven by the festive season.
“Gold is already trading at a premium, reflecting increased demand,” Jain told the Times of India. “We expect Q4 to be one of the strongest quarters for gold demand in the country’s history.”
Despite a 5% decline in gold demand for Q2 2024 compared to the same period in 2023, from 158.1 tonnes to 149.7 tonnes, the first half of 2024 saw a 1.5% rise in demand, reaching 288.7 tonnes versus 284.4 tonnes in H1 2023. Additionally, the value of gold sold in Q2 2024 rose by 14% year-over-year due to a significant increase in the average quarterly price of 24K gold, which jumped from Rs 52,191 in Q2 2023 to Rs 62,700 in Q2 2024. Investment in gold bars and coins surged by 46% year-over-year during this period.
In a related development, the Indian Association for Gold Excellence and Standards (IAGES) was announced on Tuesday. This self-regulatory organization (SRO) aims to unify key players in India’s gold industry, including the Indian Bullion and Jewellers Association (IBJA), the All India Gem And Jewellery Domestic Council (GJC), and the Gem and Jewellery Export Promotion Council (GJEPC). Supported by the WGC, IAGES is the first SRO of its kind globally.
Jain emphasized the association’s role in addressing the industry’s trust deficit by implementing rigorous audits and accreditation processes. “The goal is to boost consumer confidence and trust in the Indian gold sector by promoting fair, transparent, and sustainable practices,” Jain told Reuters.
The WGC will support IAGES through a promotional campaign aimed at retail consumers and will finance this initiative. The SRO is designed to be independently governed and professionally managed, with the adoption of its Code of Conduct being voluntary. IAGES is expected to become operational in early 2025.
