{"id":1162556,"date":"2020-01-29T14:52:12","date_gmt":"2020-01-29T20:52:12","guid":{"rendered":"https:\/\/www.mining.com\/?p=1012442"},"modified":"2020-01-29T14:52:12","modified_gmt":"2020-01-29T20:52:12","slug":"gold-price-india-suffers-demand-shock","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1162556","title":{"rendered":"Gold price: India suffers demand shock"},"content":{"rendered":"<p>Global gold demand in the second half of 2019 showed robust growth largely on the back of investor appetite for physically-backed exchange traded funds according to a Refinitiv GFMS\u00a0report released on Wednesday.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>However, jewellery, coin and and bar demand dropped around the world according to the study.<\/p>\n<p>Retail investment, which is the sum of physical bar investment and all coins, plunged by 17% in the second half of 2019, with a year\u2010on\u2010year drop recorded in both bar investment and coin demand.\u00a0In the jewellery sector,  fabrication demand declined by 17% worldwide in H2.\u00a0<\/p>\n<p>Nowhere was the pullback in the retail sector  more evident than in India where imports reached only 219 tonnes during the second half of the year, a decrease of 44%. <\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>As a result of the slowdown, many \u2018Karigars\u2019 (artisans) lost their jobs.<\/p>\n<\/blockquote>\n<\/figure>\n<p>The third quarter saw supply for domestic consumption plunge by 86% to a mere 21 tonnes. GFMS said that while Q3 is usually a quiet month because the period is not generally considered part of the wedding season and there are fewer festivals, weakness last year was &#8220;unprecedented&#8221;:<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>Domestic consumption in Q3 nosedived on two accounts \u2013 a rise in import duty, combined with a rise in the gold price in local currency terms.<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>High volatility also created confusion in the minds of the consumers. <\/p>\n<\/blockquote>\n<p>While demand returned in November, a traditional Indian gold gift giving period, the spike in the dollar price due to the US-Iran conflict caused another drop off. <\/p>\n<p>The decline in retail demand saw jewellery fabrication in the country  decrease by 36% in H2, compared to the same period in 2018, to an estimated 217 tonnes. <\/p>\n<p>GFMS said during its regular field research, the researcher observed that small to medium manufacturers in semi-urban areas were surviving by only making jewellery out of scrap. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>Aggregators used to bring old jewellery to these manufacturers to be processed and as a result of the slowdown, many \u2018Karigars\u2019 (artisans) lost their jobs.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/01\/gold-price-india-suffers-demand-shock-q3.jpg\" alt=\"\" class=\"wp-image-1012456\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/01\/gold-price-india-suffers-demand-shock-q3.jpg 907w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/01\/gold-price-india-suffers-demand-shock-q3-300x130.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/01\/gold-price-india-suffers-demand-shock-q3-768x332.jpg 768w\" sizes=\"(max-width: 907px) 100vw, 907px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Indian gold supply for domestic consumption fell 62% in second half of 2019 according to new report.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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