Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

SUMMARY AND POSITIVE FINDINGS
INDUSTRIAL GOLD USAGE OVER THE NEXT 10 YEARS
Monitoring gold usage for industrial purposes in a fragmented market in a country the size of India is no easy task. The
statistics in the report rely on Madhusudan Daga, whose indicative estimates are normally the basis for most Western
analysts.
The report does not cover the potential of industrial demand, apart from reporting that demand for plating purposes is
expected to increase, and that gold use in Zari thread could decline further due to competition from artificial golden threads.
IMPORTANCE OF THE INDIAN GOLD MARKET
Since the repeal of the Gold (Control) Act in 1990, India has emerged as the cornerstone of the world’s
physical gold market.
As the purchase of gold jewellery in India is much influenced by its parallel role as an “investment” for store of value,
savings and money purposes, demand tends to be sensitive to movements in the gold price.
The Indian gold market is important to the gold industry worldwide not only because it is so large, but also because its
sensitivity to lower gold prices leading to increased demand has often underpinned the international market when the
international gold price has weakened.
Gold jewellery is retailed through approximately 300,000 outlets.
Gold jewellery is fabricated by approximately 3 million goldsmiths and ancillary workers.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 23