DEMAND FOR GOLD COULD HIT DUE TO LOCKDOWN!

               The coronavirus has led the drop of consumption of gold in 2020. It could fall as much as 50 percent from a year ago as a nationwide lockdown has closed jewellery stores during major festivals and the wedding season.

               In the history of world, no one have ever seen such kind of destruction happening. Sales are zero during the lockdown. India’s gold consumption in 2020 could fall to 350 tonnes to 400 tonnes, the lowest since 1991. India extended a lockdown till 3^rd May as the number of coronavirus cases exceeded more than 12000. Consumer make gold purchases with their savings but after lockdown they would first try to buy essentials and at the end they will think about other luxury goods and gold.

               “Weddings, one of the biggest drivers of India’s gold purchases, usually happen in summer but this year they are postponed due to the lockdown. It is a big setback for the jewellery industry. I hope a return to some normality in in a few months could revive demand by year end.” N. Anantha Padmanaban, chairman of the All India Gem and Jewellery Domestic Council, said.

               Due to the lockdown, people are confined to their homes during the religious festivals like Gudi Padwa and Akshaya Tritiya. These festivals also help to boost the gold demand. The jewellery industry is also worried about a slowing economy, job and pay cuts that could hit demand even after the lockdown is lifted.