We’re toward the end of the Indian big-gold-demand season, and sales are reportedly down as much as 70% over last year. It’s not unusual for sales to fluctuate year-to-year, but the drop this year has to be termed “completely unexpected.”
Reasons cited for the drop include lower wages due to low agricultural prices, higher taxes, and shifting gifting demands toward electronics, especially mobile phones. Your Gold Enthusiast would add the crash in the Indian rupee in 2018, which effects are still being felt, especially in poorer parts of the country. Indian retail gold demand is traditionally the largest variable in gold sales; if this drop continues that title may shift to the Middle East, or China. Today’s featured article gives more of this story, which we’ll continue to keep our eye on.
Continue reading at Rediff.com