Demonetisation has tended to lower in gold demand. Its result to fall seven years low in 2016.
World Gold Council (WGC) showed India’s gold demand at 675.5 tonnes in 2016, 21.2 per cent lower than 857.2 tonnes in the previous year. Demand by value declined 15 percent to $27.2 billion in 2016 from $32 billion a year ago.
This will happen by taken several government initiatives to discourage consumer for buying gold.
Gold demand was affected as the industry faced a number of challenges in transitioning to a transparent system – be it the PAN (permanent account number) requirement, excise duty on jewellery, demonetisation or the publicity around income disclosure schemes. This was not unique to gold, but trade practices and embedded buying behaviour created short-term headwinds,” said Somasundaram PR, managing director (India), World Gold Council.
The demand of Jewellery fall by 22.4 per cent to 514 tonnes in 2016 from 662.3 tonnes in 2015 and investment demand fell 17 percent to 161.5 tonnes in 2016 from 194.9 tonnes in 2015.
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