Gold investment in India saw a big jump in 2024, with values going up by 60% to $18 billion (around Rs 1.5 lakh crore) from last year, as per a report out on Wednesday. This rise was a big deal, fueled by more people wanting to buy gold.
The World Gold Council (WGC) said that gold investments in India hit 239 tonnes, the most since 2013. This is a 29% rise from the 185 tonnes noted in 2023.
Strong interest in the last quarter
Gold investment stayed strong in the last three months of the year, with 76 tonnes sold, close to the amounts of the past quarter. The high demand during the festive time helped greatly, with Dhanteras and Diwali leading to more buying.
India’s role in global gold buying
India’s 239 tonnes made up 20% of the world’s gold buying, which totaled 1,180 tonnes in 2024. The world also had a big rise of 25% from 945.5 tonnes in 2023.
Reasons for the rise in demand
The report found a few key reasons for the gold boost. Gold prices went up steadily over the year. After a cut in import tax in July, prices started to shoot up, making many buyers act fast. A price drop in November also got more people to buy at better rates.
The impact of online shopping and other investments
The festive season helped with gold sales, but online shops also played a part. Big cities saw more buying thanks to the quick delivery of small gold goods, sometimes in 10-15 minutes.
Also how other investments did help people lean toward gold. The local stock market gave average returns early in the year but fell by the end of 2024 after hitting highs in the third quarter. So, many people thought gold was a safer place to put their money.
Looking forward: Rise in gold ETFs and mutual funds
The report also hinted that the gold interest might grow beyond gold bars to include gold exchange-traded funds (ETFs) and mutual funds. Global gold ETF stocks, which hit a low of 3,080 tonnes in April, slowly picked up for the rest of the year, even with a small drop in November. The rise in ETF stocks was linked to more world tensions, changes in interest rate outlooks, and gold having its best yearly price rise since 2010.
