Demand for Gold Drops 16% as Sales of Jewellery Decline 30%

Demand for Gold Drops 16% as Sales of Jewellery Decline 30%According to the World Gold Council the demand for gold has dropped by 16 percent in the second quarter as a result of plummeting demand for jewellery in India and China.

As per the report of the London based council, the demand fell globally to 963.8 metric tons this year from 1,148.3 tons in the previous year as there is a decline in the purchase of jewellery which dropped to its lowest since the fourth quarter of 2012.

As the largest consumer of gold, China was left behind by India. The global jewellery purchase fell 30 percent and the demand for of bars and coins went down 56 percent.

The council said , last year China overtook India as the largest user of gold but its demand slipped 52 percent to 192.5 tons. The demand in Indian also dropped 39 percent to 204.1 tons.

Marcus Grubb who is the managing director of investment strategy at the council said that the this year the total demand will be 900 to 1,000 tons in China and 850-900 tons in case of India. The demand in India will however depend on the import restrictions as well as the condition of the monsoon in the country.