India and China together account for more than half of total global demand for gold, with demand from India typically surpassing that of China’s. But the fourth quarter of 2011 registered a change in the trend.
The Gold India Consumed by means of IMPORTS in the year 2010 and 2011 according to World Gold Council is as follows,
- 2010 – Indians bought 657.4 tonnes of Gold for Jewelery and 348.9 tonnes for Investment with total Gold BUYING of 1,006.3 tonnes
- 2011 – Due to rising Gold prices Indians made 567.4 tonnes of Jewelery and invested another 366 tonnes as safe haven thus taking total Gold bought by Indians to 933.4 tonnes.
India consumed 25% of the World’s Total Gold Demand which stood around 4067 and 4050 Tonnes in 2010 and 2011 respectively. A large part of this demand is catered to by imports (c90-95%), while the contribution of recycled gold varies between 5-10% depending on gold prices (directly correlated). India holds the largest stock of gold in the world – 18,000 tons are held by households.