Synopsis
India's gold investments surged by 60% in 2024, reaching approximately $18 billion. The demand hit 239 tonnes, marking the highest since 2013, influenced by rising prices and festive buying.Key Takeaways
- 60% surge in gold investments
- Investment reached ₹1.5 lakh crore in 2024
- 239 tonnes demand, highest since 2013
- Festive season boosted purchases
- Weaker performance of other assets favored gold
New Delhi, Feb 5 (NationPress) In 2024, gold investments in India experienced a remarkable increase, rising by 60 percent in value to approximately $18 billion (around ₹1.5 lakh crore) compared to 2023, as indicated by a report released on Wednesday.
The World Gold Council (WGC) highlighted that the demand for gold investments reached 239 tonnes, the highest level since 2013, which is a 29 percent rise from the 185 tonnes recorded in 2023.
Investment in the yellow metal remained robust during the October-December quarter, with demand hitting 76 tonnes, nearly matching the previous quarter’s performance, according to the report.
At 239 tonnes, India's gold investment accounted for 20 percent of the global demand in this sector, which reached 1,180 tonnes in 2024.
Global demand also saw a 25 percent increase compared to 945.5 tonnes in 2023.
The WGC report attributes this surge to the consistent rise in gold prices throughout the year.
After the import duty was reduced in July, prices began to increase rapidly.
A price correction in November attracted buyers looking to purchase at lower rates.
Moreover, the festive season of Dhanteras and Diwali in October and November significantly contributed to the increase in gold purchases.
The report noted that major cities experienced heightened buying due to e-commerce platforms facilitating rapid delivery of small gold bars and coins, sometimes within 10-15 minutes.
Another factor benefiting gold was the poor performance of other assets. The domestic stock markets, which provided average returns in the first half of the year, ended 2024 with a significant drop after reaching record highs in the third quarter.
According to the report, the demand for gold is anticipated to grow to include gold exchange-traded funds (ETFs) and mutual funds.
After hitting a four-year low of 3,080 tonnes in April, global gold ETF holdings gradually recovered throughout the year, aside from a minor decline in November.
The report attributes this recovery to rising geopolitical uncertainties, shifting expectations regarding interest rates, and gold’s best annual price performance since 2010.
