24-4-2020
The world's second-biggest gold buyer India's gold consumption in 2020 is estimated to fall as much as 50 percent, according to Indian Chamber of Commerce, as a result of jewellery stores closure during key festivals and wedding season.
"We have never seen such kind of demand destruction happening. Sales are zero during the lockdown," he added. N. Anantha Padmanaban, chairman of the All India Gem and Jewellery Domestic Council pointed out that the demand level could reach the lowest since 1991 to 350- 400 tonnes.
Gold purchase in India is driven by wedding seasonusually happen in summer and religious festivals such as Gudi Padwa in March and Akshaya Tritiya in April. The jewellery industry is worried a sluggish economy as well as job and salary cuts would hit gold demand even after the lockdown, which has extended until 3 May, is lifted. "People would first try to buy essentials after the lockdown and at the end they will think about luxury goods like gold," said Surendra Mehta, secretary at the India Bullion and Jewellers Association.
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