August saw India’s gold imports close to double compared to the same time a year ago thanks to strong demand due to cheaper prices and jewellers preparing for the upcoming festive season.
Gold imports reached the highest level for the past five months in August, ET Bureau reported. India is the world’s second largest consumer of bullion and the rise in gold imports, while predicting strong jewellery sales, could increase the country’s trade deficit and put pressure on the rupee.
In August 2021, India’s gold imports weighed 121 tonnes up from 63 tonnes in August 2020, according to a Reuters source. This represents an increase in value from $3.7 billion (Rs 24,615.2) in August 2020 to $6.7 billion in August 2021.
As the festive season and winter wedding season approach, jewellers are hoping for a recovery from muted sales last year due to the coronavirus pandemic and continued lockdowns. The price correction in gold enabled jewellers to stock up on inventory ahead of what they hope will be their busiest time of year.
Consumer trends for gold jewellery have been influenced by the pandemic, which served to speed up several trends which were already emerging. Lightweight items, which are cheaper and seen as easier to wear everyday, have continued to increase in popularity, as has the concept of buying jewellery for oneself. Online gold jewellery have also risen in importance and numerous jewellery brands are launching e-commerce sites to cater to this growing demand.
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