WGC Published New Report on Reform and Growth of India’s Gold Market

SEATTLE (Scrap Monster): The World Gold Council (WGC) has released a new report outlining reform and growth in India’s goldmarket.

According to the report, rising income happens to be the most powerful driver of Indian gold demand in the long term. However, it is affected by a variety of other factors including policy measures. As of today, gold lacks support from such measures. In order to enhance the image of the country’s gold industry, it needs to build trust and improve awareness among gold consumers, WGC noted.

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The other long term drivers include gold price level and levies imposed by the government such as import duties and other taxes.

The research conducted by the gold trade body reveals that inflation, changes in gold price, tax regime and excess rainfall are factors that could affect short-term demand for the yellow metal.

Traditionally, the country’s population has been centered around rural communities. However, there has been a major shift in trend during recent times. In 1960, only 18% of the population lived in cities, whereas this has almost doubled to 34% in 2019. This indicates that urbanisation has accelerated tremendously over the years. The structural shift in markets are likely to impact gold demand as well.