The World Gold Council today launched a report titled ‘The drivers of Indian gold demand’, the first in a series of in-depth analysis on the Indian gold market. The econometric analysis shows that rising income is the most powerful driver of Indian gold demand in the long term, which bodes well for Indian gold demand as the economy is complemented by a strong demographic dividend.
The report finds for each 1% increase in gross national income per capita, gold demand rises by 0.9%, For each 1% increase in the rupee- based price of gold, demand falls 0.4% and there are many factors which are mentioned in that report. The report assesses gold demand from a range of perspectives, both quantitative and qualitative. Somasundaram PR, Regional CEO, India, World Gold Council, commented; “We, at the World Gold Council, are confident that these findings will shape industry strategy around reinforcing established conventions and developing new ways to attract and sustain demand in the future”.