India Gold Sales to Hit 25-Year Lows

SEATTLE (Scrap Monster): The sale of gold items, ranging from gold bars to jewellery items, is likely to plunge to the lowest level in nearly 25 years. The demand, which had already been on a rapid decline, has tumbled to rock bottom levels following the government imposition of 21-day lockdown period across the country to contain spread of coronavirus epidemic.

The demand for gold in the country has been on continuous decline on account of record high gold price and recent slowdown in economy.

ALSO READ: Gold Discounts Narrowed in India as Prices Dipped Further

According to estimates by All India Gem and Jewellery Domestic Council, total yearly gold purchases in 2020 are expected to drop to nearly 485 tons. This is almost 30% lower than the imports of 690 tons last year. The lowest recorded gold import level by the country is 477 tons, way back in 1995.

The footfalls in many gold retail outlets across the country have been notably weak. The lockdown has resulted in temporary shutdown of all shops at least until April 14^th. May and June are usually months when seasonal demand is low.

The local gems and jewelry sector has come to a grinding halt. Titan-the country’s biggest jeweller by market value had recently announced closure of its offices and retail outlets following outbreak of the virus.