Now Reading: Gold volume falls 6%, value jumps 50%; Titan sees rebound
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Gold volume falls 6%, value jumps 50%; Titan sees rebound
Gold demand in India dropped 6% in volume to 131.4 tonnes in the April-June quarter, but its value rose 50% to Rs 1.98 lakh crore, the World Gold Council reported. Jewellery demand…
The Story in Brief
Gold demand in India dropped 6% in volume to 131.4 tonnes in the April-June quarter, but its value rose 50% to Rs 1.98 lakh crore, the World Gold Council reported. Jewellery demand fell 15% to 75.1 tonnes, though value climbed 34% to Rs 1.13 lakh crore as consumers shifted to lighter and lower-carat pieces. Investment demand grew: bar and coin purchases rose 9% to 50.3 tonnes, and gold ETF inflows surged 49% to 4.2 tonnes.
Titan, the country's largest jewellery retailer, reported a 20% rise in consolidated revenue to Rs 21,356 crore and a 63% jump in net profit to Rs 1,777 crore for the June quarter. Managing director Ajoy Chawla said demand slowed briefly in May due to a customs duty hike and the inauspicious Adhik Maas period but recovered in June as weddings resumed. He expressed confidence in longer-term growth despite high gold prices, noting that over half of jewellery sales now involve exchanging old gold.
The Indian Opinion
Two competing narratives are at play: one about a volume slump and the other about resilient value and company optimism. Neither is wrong, but each is incomplete alone. The volume drop is real, yet consumers are adapting, buying lighter items and using exchanges, rather than abandoning gold. The real test will come during the upcoming festive and wedding season. Can volume growth return even if prices stay high, or will the value growth mask a deeper shift away from gold as a store of savings?
Sources (2): livemint.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
