India retains top slot in gold consumption

India held on to its position as the world’s largest gold-consuming nation in 2009, mainly due to higher consumer demand during the fourth quarter, according to the World Gold Council, an organisation formed and funded by the world’s leading gold mining companies.

For every 100 gms of gold bought across the world, 14 gms were picked up by Indians, who continued to buy gold for jewellery and investment purposes despite the average price of gold in 2009 being 12% higher at $972.35 an ounce in the international market from the 2008 levels.

“Tonnage offtake in the fourth quarter totalled 180.7 tonne, up 17% from 154.4 tonne in the previous quarter and up 13% from 159.6 tonne in the fourth quarter 2008,” said WGC in its gold demand trends for the fourth quarter of 2009. “Seasonal factors assisted the quarter-onquarter improvement, as the fourth quarter marked the start of the wedding and festive seasons, including Diwali. Nevertheless, in light of the rally in gold price during that quarter , it is still an encouraging result.”

Source : http://economictimes.indiatimes.com/Bullion/India-retains-top-slot-in-gold-consumption/articleshow/5586073.cms