KOCHI: Kerala probably has the highest per capita consumption of gold in India and has an annual consumption of 200-225 tonnes, Sachin Jain, Regional CEO of the World Gold Council (WGC), said on Friday.
Speaking to reporters, Jain said gold prices are unlikely to see a correction in the short term, thanks to the purchases made by central banks of different countries and the present geo-political uncertainties.
In 2023, India’s gold demand stood at 747.5 tonnes, which is 3% lower than the previous year, strongly influenced by rising gold prices.
According to the release shared by the market development organisation for the gold industry, there are more than 15,000 establishments trading in gold and silver jewellery in Kerala. Jain emphasised that consumers in the state are particular about the quality of the gold, with almost 100% of the gold and precious stones sold in the state being hallmarked.
The latest WGC report indicated that demand for gold in India for Q1 2024 was 136.6 tonnes, up by 8% compared to the Q1 demand for 2023, which was 126.3 tonnes.
Total jewellery demand in India for Q1 2024 increased by 4%, reaching 95.5 tonnes compared to 91.9 tonnes in Q1 2023. The demand for jewellery rose to Rs 52,750 crore, a 15% increase from Q1 2023, which was Rs 45,890 crore.
“As we look forward, while the current high gold prices may temporarily put strain on demand, strong cultural and seasonal factors such as festivals, weddings helped by an expectation for a better monsoon and solid economic growth would support demand. Our full-year gold demand forecast for India is between 700-800 tonnes, if the price rally continues it could be at lower end of this range,” he said.