Indian appetite increases four-fold to 147 tonne

Jewellery consumption in India increased nearly four-fold in tonnage terms to 147.5 tonne from 37.7 tonne in the first quarter of 2009, the WGC said, belying the sharp rise in prices.

Written by Agencies

May 27, 2010 21:58 IST

Jewellery consumption in India increased nearly four-fold in tonnage terms to 147.5 tonne from 37.7 tonne in the first quarter of 2009, the WGC said, belying the sharp rise in prices.

Indian gold demand had strengthened after a weak 2009 after the Reserve Bank of India?s purchase of 200 tonne of gold from the International Monetary Fund last autumn, the WGC said. It has underpinned positive sentiment towards gold among Indian consumers, it added.

Greater Chinese jewellery encompassing Hong Kong and Taiwan?also rose 11% in the first quarter, while demand from the Middle East rose 23% and from Turkey by 12%.

According to WGC demand in India and China will continue to grow driven by jewellery demand, in spite of high local currency gold prices. In Q1 2010, India was the strongest performing market as total consumer demand surged 698% to 193.5 tonne. In China, demand proved resilient; demand increased 11% in Q1 2010 to 105.2 tonne.

This article was first uploaded on May twenty-seven, twenty ten, at fifty-eight minutes past nine in the night.