Gold investments in India surged by 60% in 2024, reaching $18 billion (approximately Rs 1.5 lakh crore), compared to 2023, according to a report on Wednesday.
The World Gold Council (WGC) report added that gold investment demand stood at 239 tonnes, marking its highest level since 2013. This was a 29% increase from the 185 tonnes recorded in 2023.
Gold investment remained strong in the October-December quarter, with demand reaching 76 tonnes, nearly matching the previous quarter’s performance, the report highlighted.
At 239 tonnes, the country’s gold investment accounted for 20% of the global demand in this category, which stood at 1,180 tonnes in 2024.
Worldwide demand also grew by 25% compared to 945.5 tonnes in 2023.
According to the WGC report, the primary reason behind the surge was the steady rise in gold prices throughout the year. Following a reduction in import duty in July, prices quickly began to climb again. A correction in November attracted investors looking for an opportunity to buy at lower prices.
Additionally, the festive season of Dhanteras and Diwali in October and November played a key role in boosting gold purchases.
The report further noted that major metropolitan cities saw increased buying, with e-commerce platforms offering rapid delivery of small gold investment bars and coins, sometimes within 10-15 minutes.
Another factor that worked in favour of gold was the weaker performance of other assets. Domestic stock markets, which gave average returns in the first half of the year, ended 2024 with a notable decline after hitting record highs in the third quarter.
The demand for gold is likely to expand to include gold exchange-traded funds (ETFs) and mutual funds, the report added.
After hitting a four-year low of 3,080 tonnes in April, global gold ETF holdings gradually recovered throughout the rest of the year, apart from a slight decline in November.
The report attributed this increase to growing geopolitical uncertainties, changing expectations about interest rates, and gold’s best annual price performance since 2010.
(Inputs from IANS)