India Accounts For 25 Percent Of Gold Demand WorldwideMarch 7, 2011 10:27 am
World Gold Council is reporting that India accounted for more than 25 percent of total worldwide demand for Gold in 2010. India and China together account for more than 50 percent of the worldwide demand for Gold.
“India was the strongest growth market in 2010. Total annual consumer demand of 963.1 tonnes registered growth of 66% relative to 2009, which was largely driven by the jewellery sector. In value terms this was worth US$38 billion.”
One explanation provided by the World Gold Council:
“Emerging country banks are likely to continue purchasing gold as a means of preserving national wealth and promoting greater financial market stability. Any gold sales from advanced economies are unlikely to be significant as the official sector remains highly risk-averse. Collectively, the official sector is still a significant holder of gold. Central banks remain committed to its importance and relevance in maintaining stability and confidence as they have been for hundreds of years”