Page 11 - Bullion World Volume 4 Issue 1 January 2024

Bullion World | Volume 4 | Issue 1 | January 2024

Gold and Silver

to rise 10% and

20% respectively

in 2024

Mr Prithviraj Kothari, President, IBJA

India's bullion market exhibits a heightened
sensitivity to global economic factors. In periods
of economic uncertainty, geopolitical tensions, or
instability in financial markets, investors frequently
turn to safe-haven assets, with gold emerging as a
preferred choice in 2024. Mr Prithviraj Kothari

1. Recycling Impact: • Growing domestic investment inflows amid global
• Jewellery recycling has surged, potentially reducing uncertainties contribute.
imports. • Indian Gold ETFs attracted Rs 26,500 crore AUM
• Market price discounts and lower import volumes with 42 tonnes holdings.
reflect decreased physical demand. 3. Slower Physical Demand:
• Jewellery demand may struggle to recover in a high- • Record-high prices affect physical demand,
price environment. impacting jewellery sales.
2. Boost in Investment Demand: • Despite the wedding season, lower purchases noted
• Gold investment demand strengthened due to compared to previous years.
favourable domestic economic growth. • High gold prices limit jeweller inventory build-up;
consumers focus on essential needs.

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