A Short Picturesque Guide To Indian Gold Demand

The Globe and Mail's guide, entitled "In Gold We Trust," points out that the bulk of gold demand is still for jewelry.

According to the World Gold Council, which represents 27 major gold producers, 68% of the worldwide demand for bullion over the five years from 2004 to the end of 2008 was for use in jewellery, compared with just 19% for investment purposes and 14% for industrial uses. On a geographic basis, the council says that East Asia, the Indian subcontinent and the Middle East accounted for 70% of global demand in 2008.

That makes the jewelry market an important one for gold watchers, particularly the Indian market as India has been rated as the #1 nation for gold demand. Like with the Chinese, Indian have a tradition of keeping a lot of their wealth in gold - particularly, in jewelry form.


In another story, Indian gold imports declined to 28.8 metric tons in February for a more than 15% drop as compared with January's figure. Although February saw some low prices, the four-figure level took somewhat of a toll.