India’s gold fetish: $ 300 billion worth of gold consumed in last 10 years!

SifyFinance/06-22-17

India has ‘consumed’ around $ 00 billion worth of gold in the last ten years, a report by Kotak Institutional Equities has found. The report says gold prices have risen by 300% in this decade (FY 2008-FY2017). The best period for investing in gold was, however, the first five financial years (FY2008-12) covered by the report when ‘trade’ worked well as gold prices were rising rapidly. But the story has not been the same in the last five financial years (FY2013-17). This period has seen half the gold ‘consumption’ of the past decade and virtually flat gold prices.

PG View: That’s a lot of gold to be sure and while demand has tapered in more recent years, it was in the face of what amounted to an all-out war on gold. In light of that, I would suggest that gold demand remains quite resilient.