Demand for gold jewellery falls 12% due to increase in prices

India’s demand for gold jewellery was down by 12% in the first quarter from a year ago, as the rising price of gold discouraged consumers, the World Gold Council (WGC) said. Also, small jewellers faced issues transitioning to GST, it observed.
In the first three months of 2018, jewellers sold 87.7 tonnes of gold ornaments worth Rs24,130 crore, marking the third weakest quarter for gold demand in the country in almost a decade, according to the WGC.
Despite a drop in Q1 demand, WGC India managing director Somsundaram PR said that gold consumption in 2018 would be close to 800 tonnes, as rural demand was expected to pick up following the government’s policy focus on doubling farm income. Also, retailers in the unorganised sector have been settling down with the goods and services tax (GST). In 2017, gold consumption in India stood at about 737 tonnes.
“A substantial drop in the number of auspicious wedding days during the Q1 of 2018 compared with Q12017 could be a factor for muted demand, as consumers made less wedding-related purchases,” the India head of WGC said. “Imports were down 50% year-on-year in anticipation of an import duty cut in the budget which did not materialise.” 
“Trade activity resumed positively during Akshaya Tritiya, demonstrating the resilience of the industry. Policy focus on doubling farm income and ease of business under GST augur well for the gold industry in 2018 and the medium term,” Somasundaram said.



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Changes in Our Business Model
25th Sept 2020
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Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
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