India’s Gold Investments Soar 60% to ₹1.5 Lakh Crore in 2024
In 2024, India recorded a notable 60% jump in gold investments, amounting to $18 billion (about ₹1.5 lakh crore), according to a report by the World Gold Council (WGC). This increase was driven by rising gold prices, reduced import duties, and heightened demand during festive seasons. India’s gold investment demand hit 239 tonnes—the highest level since 2013—making up 20% of the global gold investment demand. This article delves into the main factors contributing to this surge and its potential implications.
Key Points:
- India’s gold investments surged by 60% in 2024, reaching ₹1.5 lakh crore ($18 billion).
- Gold investment demand in India stood at 239 tonnes, a 29% increase from 185 tonnes in 2023.
- India accounted for 20% of global gold investment demand (1,180 tonnes).
- Global demand for gold investments grew by 25%, reaching 1,180 tonnes in 2024, compared to 945.5 tonnes in 2023.
Key Factors Behind the Surge
- Rising Gold Prices: A steady increase throughout the year made gold an attractive investment.
- Import Duty Reduction (July 2024): Encouraged buying as prices climbed again after an initial dip.
- Festive Season Demand: Dhanteras and Diwali (October–November) led to high gold purchases.
- E-commerce Boom: Rapid delivery of gold bars and coins in 10-15 minutes boosted sales.
- Weaker Stock Market Performance: A decline in stock markets in the latter half of the year made gold a safer alternative.
- Geopolitical Uncertainty & Interest Rate Expectations: Global economic conditions favored gold as a secure asset.