India is largest consumer of gold jewellery in 2024, surpassing China: WGC report 

From January to December, 2024, India’s gold jewellery consumption stood at 563.4 tonnes, compared to China’s 479.3 tonnes for the same period 

Mumbai: Data from the World Gold Council’s Gold Demand Trends -Q4 and Full Year 2024 report, released on February 5, reveals that India has surpassed China as the world’s largest consumer of gold jewellery for the year 2024. From January to December, 2024, India’s gold jewellery consumption stood at 563.4 tonnes, compared to China’s 479.3 tonnes (511.4 tonnes including Hong Kong SAR and Taiwan province of China) for the same period, reinforcing the country’s position as the world’s largest gold consumer in this segment. 

Commenting on this, Sachin Jain, Regional CEO, India, World Gold Council said, “This was facilitated by multiple record-high gold prices, a reduction in import duty, investment demand, and purchases related to weddings and festivals. This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India’s stronger economic growth compared to many other markets.”  

GOLD JEWELLERY CONSUMPTION IN 2024 

India’s 2% year-on-year decline in 2024 showed resilience, particularly compared with China’s 24% year-on-year drop in demand for gold jewellery. Jewellery accounts for nearly 70% of India’s total gold demand, while investment demand makes up the rest. In Q4 2024, India’s gold jewellery consumption decreased by 5% to 189.8 tonnes as compared to 199.6 tonnes in Q4 2023. 

The environment for Chinese jewellery demand was very challenging throughout 2024, hit by a combination of poor consumer confidence amid declining income growth and surging gold prices. The jewellery retail sector has faced challenges and stores have been closing throughout the year, said the WGC report.  

Globally, total annual gold demand for 2024 hit a record high of 4,974 tonnes, driven by strong, sustained central bank buying and growth in investment demand, even as prices soared. Though this weakened jewellery demand volume, it drove value to record levels of $382 billion. Q4 set the seal on a very weak year for global gold jewellery demand as record price levels impacted affordability. Worldwide, a 12% year-on-year drop in Q4 demand to 547 tonnes took the annual total down to 1,877 tonnes (-11%) as unrelenting gold price strength impacted consumers’ ability to buy. 

OUTLOOK FOR 2025: INDIA 

India’s gold consumption in 2025 is set to moderate from last year’s nine-year peak, as a rally in prices to a record high is seen to be dampening jewellery demand, even as investment demand rises, the WGC report said. “Demand for gold could stand between 700 metric tonnes and 800 metric tonnes, compared to last year’s 802.8 tonnes, which was the highest since 2015,” said Sachin Jain. 

However, the soaring gold prices, leading to effectively higher returns, are boosting investment demand, which will rise further in 2025 after surging 29% in 2024 to an 11-year high of 239.4 tonnes, Jain added, explaining, “It is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars.” 

OUTLOOK FOR 2025: GLOBAL 

Commenting on the global outlook for gold consumption and demand, Louise Street, Senior Markets Analyst at the World Gold Council, said: “In 2025, we expect central banks to remain in the driving seat and gold ETF investors to join the fray, especially if we see lower, albeit volatile interest rates. On the other hand, jewellery weakness will likely continue as high gold prices and soft economic growth squeeze consumer spending power. Geopolitical and macro-economic uncertainty should be prevalent themes this year, supporting demand for gold as a store of wealth and hedge against risk.” 

Meanwhile, on February 5, gold prices globally hit another all-time high, driven by safe-haven demand after China retaliated with tariffs on the United States in response to President Donald Trump’s trade levies. Domestic gold prices hit a record high of Rs 84,399 ($968.62) per 10 grams on Feb 5. They have risen 10% so far in 2025 after rising more than 21% in 2024. 

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