The report highlights that increased investment in India and China offset the slowdown in Europe and the US.
Key highlights of the Report
- Global demand: It grew by 25% whereas investment demand increased by 29% (2023).
- Global Supply: It increased by 1% mainly on account of mine production and recycling.
- Outlook for 2025: Central banks and Gold Exchange Traded Funds are likely to drive demand
- India: RBI added 73 tonnes of gold to its forex reserves, raising gold's share to a record 11%.
Reasons for increase in Gold demand in India
- Symbol of wealth & status: Gold is integral to rituals and traditions E.g. Sacred in Hindu & Jain traditions.
- Investment & Security: It is valued for portability, especially in rural areas.
- Weddings: 50% of annual gold demand comes from marriage-related purchases.
Status of Gold Resource
- India: Largest resources in terms of gold ore (primary) are located in Bihar (44%) followed by Rajasthan (25%), Karnataka (21%),West Bengal & Andhra Pradesh (3% each) and Jharkhand (2%).(Ministry of Mines,2022)
- Global: Major holders of Gold reserves include USA> Germany> Italy> France> China> Switzerland> India> Japan
- Top exporters: Germany >European Union >Switzerland>United States > Japan (World Integrated Trade Solution,2023 )
World Gold Council (WGC)
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