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Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

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GOLD SUPPLY AND DEMAND<br />

INDICATIVE GROSS FABRICATION AND DEMAND<br />

For the domestic market in 2001 and 2000<br />

Includes the recycling of old gold<br />

Tonnes<br />

Fabrication 2001 2000<br />

Tonnes % Split Tonnes % Split<br />

Industrial 43 4 32 3<br />

Jewellery<br />

Gross sales 930 88 925 90<br />

Increase in inventories 25 2 25 2<br />

Sub-total 955 91* 950 93*<br />

Coins 35 3 31 3<br />

Gross fabrication 1,033 98 1,013 99<br />

Net bar hoarding 20 2 14 < 2<br />

Gross demand 1,053 100 1,027 100<br />

Table source: Grendon International Research<br />

Sources. Derived from previous tables. * Totals do not add up due to rounding.<br />

The market does not make structural sense, and the comments of the trade do not make sense, unless the<br />

extent of gross fabrication is taken into account.<br />

The indicative estimate of 1,053 tonnes puts the tonnages of industrial fabrication (4%), coin fabrication (3%) and net bar<br />

hoarding (2%) into perspective. Jewellery accounts for around 90% of the gross market.<br />

AN INTRODUCTION TO THE INDIAN GOLD MARKET 173

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