According to the World Gold Council, India’s gold consumption in the current quarter is likely to be at its highest level in at least a decade, as consumers stocked up for the November holiday and peak wedding season.
Indians buy gold jewelry to wear and give as gifts at weddings because the precious metal is considered auspicious in India and is expected to bring good luck and fortune.
The economy is gradually emerging from the pandemic
Consumer confidence is slowly returning as the economy recovers from the epidemic, prompting shoppers to throng jewelry retailers.
“Imports have climbed this year, and the forecast for foreign purchasing remains good, as jewelry output remains at an all-time high.” “For the time being, it appears that we will have another strong import and demand quarter,” India’s regional executive director, Somasundaram, said.
India relies significantly on imported gold to fulfill domestic demand because it produces relatively little and recycles very little.
According to Somasundaram, nearly a third of imports are gold ore for processing at the country’s 32 oil refineries, which are having difficulty sourcing ore because most of the businesses do not have reliable suppliers.