Gold demand in India continues to rise in 2010

With the growing economy, the demand of gold is rising in India. According to the World Gold Council (WGC) in H1 2010, demand of gold rose by 94 percent to 365 tonnes in H1 2010 against 188.4 tonnes in H1 2009. In terms of Rupee, demand increased to Rs. 45,700 crore.

In a press release, issued by WGC, it said that 2010 provided further indication of diversity in gold. With the progression of the year gold market grew significantly which made gold jewelries very attractive. WGC also expects that demand for gold would remain strong during 2010. India and China will continue remain the main growth area for the gold especially gold jewellery.

The volume of growth increased 67 percent to 272.5 tonnes against 163 tonnes in H1 2009. In terms of value, gold demand grew 122 percent from Rs.27,300 crore to Rs. 60,500 crore.

The volume of gold in investments grew by 264 percent to 92.5 tonnes in H1 2010 against 25.4 tonnes in the corresponding period last year. Investments accounted for Rs.14,800 crore in H1 2010 which is a 300 percent increase against Rs.3,700 crore in H1 2009.

With the arrival of Indian marriage season and important festivals such as Dhanteras, Diwali, and Onam, people would continue buying gold throughout the year.