World’s Largest Gold Jewellery Consumer in 2024

India has officially surpassed China to become the world’s leading Gold Jewellery Consumer in 2024, according to the latest report by the World Gold Council (WGC). The report highlights that India’s total gold jewellery demand reached approximately 600–650 tonnes, outpacing China’s consumption, which stood at around 500–550 tonnes. This shift marks a significant moment in the global gold market, reflecting India’s deep cultural and economic connection with gold.

Key Drivers Behind India’s Gold Surge

Cultural Significance & Wedding Demand

India’s unwavering demand for gold is largely fueled by weddings and festivals, where gold jewellery plays an integral role. The Indian wedding industry alone contributes to over 50% of the country’s annual gold jewellery sales. Events like Diwali, Akshaya Tritiya, and Dhanteras further drive purchases, reinforcing gold’s status as a symbol of prosperity and wealth. As a result, India has cemented itself as the world’s top Gold Jewellery Consumer in 2024.

Rising Disposable Income & Investment Trends

With India’s GDP growth projected at 6.5% in 2024, an expanding middle class and increasing disposable income have amplified spending on gold. Additionally, gold is considered a safe investment, leading many consumers to purchase jewellery not only for adornment but also as a financial asset. This trend has further strengthened India’s position as the leading Gold Jewellery Consumer in 2024.

Favorable Market Conditions & Price Fluctuations

While gold prices have fluctuated in global markets, India’s demand remained resilient, with a shift toward lighter, more affordable jewellery styles. Reports indicate that rural demand, which accounts for nearly 60% of India’s gold consumption, remained strong, despite price volatility. These factors have collectively contributed to India becoming the largest Gold Jewellery Consumer in 2024.

Government Policies & Import Trends

India imports nearly 90% of its gold requirements, and despite recent hikes in import duties, demand has stayed robust. The introduction of the India International Bullion Exchange (IIBX) has also contributed to streamlined gold trade and pricing transparency. This has played a crucial role in boosting India’s reputation as the world’s leading Gold Jewellery Consumer in 2024.

Read this… Gold Rate Fluctuations in 2024: A Year of Peaks and Returns

China’s Declining Demand & Global Implications

China, which has historically dominated gold consumption, witnessed a slowdown due to economic challenges, lower disposable incomes, and shifting consumer preferences. This decline, combined with India’s growing appetite, has redefined global gold trade dynamics, with international suppliers now prioritizing the Indian market.

India’s Future in the Global Gold Market

Experts predict that India’s gold jewellery demand will continue to grow, potentially crossing 700 tonnes in the coming years. With evolving consumer preferences, technological innovations in jewellery design, and expanding digital gold investment platforms, India is set to maintain its position as the world’s top Gold Jewellery Consumer in 2024.

Source: BusinessWorld, based on the latest World Gold Council report.

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