The demand for Gold is coming down. It is after the demonetisaton. It is now difficult for the sellers and also the buyers to deal with the gold. One cannot now make any transaction above Rs 3 lakh in cash. Gold purchase cannot be made above Rs 2 lakh in cash.
India’s total gold demand fell to a seven-year low in 2016 as stringent government regulations, jewellers strike, higher prices and cash crunch on account of demonetisation impacted sentiments.
The scrapping of high denomination currency notes also impacted the amount of gold smuggled into the country through various unofficial channels.
According to World Gold Council (WGC), the total gold demand in 2016 fell to 675.5 tonnes, down 21.19 per cent from 857.2 tonnes in 2015.
“The Indian market faces a challenging time in 2017. We anticipate many of the headwinds that affected demand in 2016 to continue into this year, but we are confident that the government’s move towards a more transparent gold market will ensure that gold remains an important asset class for millions of people in India,” said Alistair Hewitt, head of market intelligence at the WGC.
It added that the steep drop in the gold price, which coincided with the festival of Dussehra, supported gold demand in the first two weeks of October.But on the whole the demand is coming down. It will take another 6 months for the people to settle down with these new norms of cash and they might find ways and means to make transaction including the gold sellers.
