- Gold Demand Continues To Surge In China And India
by SchiffGold.com, https://www.zerohedge.com/
China and India rank one-two in global gold consumption, and through the first quarter of 2021, gold demand charted an impressive rebound in both countries. China’s year-on-year gold consumption surged 93.9% as first-quarter demand rebounded to pre-pandemic levels. Meanwhile, official Indian gold imports hit the highest level in a decade in March.
Demand for gold in both India and China took a hard hit due to COVID-19 and their governments’ response to the pandemic.
Gold demand in India has languished for the last couple of years. The pandemic crushed demand, particularly for gold jewelry, but record-high gold prices in rupee terms and government policy put a drag on the gold market even before COVID-19. There were signs of a turnaround late last year and it continued through the first two months of 2021.
Gold imports into India came in at 164 tons in March, according to the World Gold Council. This followed on the heels of 91 tons of gold imported in February. It was only the third time over the last 10-year period that official imports have exceeded 150 tons on a monthly basis.
According to the World Gold Council, “Robust retail demand – on the back of the lower gold price and wedding demand – along with re-stocking by jewelry manufacturers and retailers, are the factors responsible for driving official imports to such a high level.”