World Gold Council (WGC), the market development organisation for gold industry, said on Tuesday it was expecting a slump in demand for gold this year. The first half of the current year has seen an 8% dip in value terms in comparison with the same period of 2011. The WGC is expecting the demand for gold to be at around 800 tonnes in India in 2012, compared with 933 tonnes in 2011. However, it hopes the market to pick up the momentum in the festive and wedding seasons, this year.
Speaking to reporters on the sidelines of the launch of WGC’s wedding jewellery brand Azva, Vipin Sharma, director, jewellery, WGC, said, ?The trend is picking up and there is a positive movement. We expect the overall gold consumption in India would grow to 800 tonne this year, with the industry getting a momentum in the wedding season.”
On an average, in last three years gold market in India has seen a demand of 700 tonnes a year. The mix between the jewellery and investment gold are also changing, with more growth towards investment in the country, he said.
The WCG launched Azva, a wedding jewellery collection designed in collaboration with various jewellery firms, in the city. The council, which owns the brand, would do the brand promotion and advertisement for Azva and it would be manufactured and sold in select major retail outlets in the country. Plans are to complete launch of the product in the four major cities ? Mumbai, Delhi, Chennai and Bangalore before Diwali, at 40 outlets. It plans to launch the products in 20 cities in next one year. He said, ?Today, 50% of the gold is bought for weddings and we are targetting the young couples in the age group of 23-30 years, who wish to wear the bridal jewellery beyond marriage. The collection ranges from 70-300 gram and the price range was a broad one.?
