Indian demand for gold is set to increase 30% by 2020, according to research by the World Gold Council, as Indian citizens turn to precious metal as safe-haven investment.
Indian households already own the world's largest single stock of gold – more than 18,000 tonnes, says the research – and last year accounted for nearly a third of total gold purchases. Rising Indian demand seems set to drive strong global demand in the next decade.
The price of gold reached a record nominal high earlier this year and seems set to keep rising. Chinese demand is growing quickly, with the country switching last year from being a net exporter to a net buyer of gold. In the West, investors are buying gold as an inflation hedge and to protect their assets against a possible breakdown in the Eurozone and a sovereign debt crisis.
Ajay Mitra, managing director, India and the Middle East, for the World Gold Council said: “Indians tend to be risk averse and place great faith in the wealth preservation qualities of gold, which inspires confidence, stability and security.”
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