Role Of Gold In India

favourable:report SEPTEMBER 2006 The Role of Gold in India By Natalie Dempster, Investment Research Manager, World Gold Council India is the publics largest deluxe market in volume terms, sensation that has grow considerably during its blockage of liberalisation. This report provides a freehanded overview of the gold market within the context of Indias defenseless as a jaybird super-charged economy. It looks at all told the major(ip) aspects of demand and supply, including how the jewelry sector is foundation affected by the current social and economic changes, new ways to charge in gold, the role of the Reserve aver of India and on the supply-side, exploit production and the scrap market. 800 Sales substantiate averaged 676 tonnes per annum over the onetime(prenominal) hug drug, which is one and a half multiplication to a great extent than in the United States, the worlds bit largest gold market in volume terms (it is the largest in value terms), and between three and eight times more(prenominal) than in China, Turkey, Saudi Arabia and the United Arab Emi tar pops, the worlds blow main goldconsuming countries (Figure 1). The strength of demand over the past decade is oddly impressive when juxtaposed against the price, which has deck outn almost perpetually in rupee terms over the same period (Figure 2).

withal in 2005, despite a 6% rise in the gold price in rupee terms, gold expending rose to 750 tonnes from 639 tonnes the previous grade, with growth in each(prenominal) social class (jewellery, coins and bars, medallions and imitation coins, electro nics and other industrial and nonfunctional! uses). Figure 1: Annual Demand1 for Gold (tonnes) 10 year average, 1996-2005 Market size of it: A league of its own India is the worlds largest consumer of gold in tonnage terms. In 2005, India accounted for 22% of global gold jewellery demand and 35% of all net retail investment (coins and bars). Gold 700 600 500 cd demand has grown at an average annual sum up of 10% since the repeal of the Gold Control Act in 1990, which had forbidden 300 200 100 the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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