Demand for gold jewellery falls 3%

The World Gold Council recorded a year-on-year dip in global demand for gold jewellery in Q3 2017 which it largely attributed to the implementation of GST tax structure and anti-money laundering regulations in India.

The demand for gold in Q3 2017 was 915 tonnes, a drop of 9 per cent compared with the same period in 2016, said a World Gold Council trend report. India is the second largest consumer of gold.

The introduction of 3% GST on gold was the main reason for the dip in demand along with the preemptive purchases made by buyers before the month of July. Small traders and goldsmith were also hindered by the GST return filing and KYC norms which were made mandatory for purchases of above Rs. 50,000. Rural demand also saw a dip due to KYC norms and damage to Kharif crops in some region.

Meanwhile, jewellery stocks did not react much to this trend. The stock of Titan Company closed at Rs. 777.70 per share, up by 4.30%, PC Jeweller was at Rs. 358.85, up 6.90%, Gitanjali Gems was at Rs. 68.85, up 1.62%, Rajesh Exports was at 787.00, up 1.44%, Tribhovandas Bhimji Zaveri was at Rs. 121.65, up by 0.21%, while Thangamayil Jewellery was at Rs. 433.95, down 0.24%.