Demand for gold rising 38% in second quarter of 2011

India is the strongest growth market in the second quarter of  2011 with total consumer demand for gold rising 38 % in tonnes, compared with the second quarter of 2010, according statistics compiled by the World Gold Council.

In value terms, demand for gold increased by 70% to Rs 53,800 crore in the second quarter of the financial year from Rs 31,730 crore in the corresponding period last year. Indian gold demand in Q2 2011 constituted 32% of the global demand for gold.

Jewellery demand surged to 139.8 tonnes, a 17.1% increase, from second quarter 2010, boosted by the festive season and the widespread expectation among Indian consumers about a further increase in the price of gold. In value terms, jewellery accounted for Rs 30,290 crore in the second quarter of 2011 annual increase of 44% , compared with the second quarter of 2010.

The investment demand comprising demand for bars and coins as well as Gold Exchange-Traded Funds (ETFs) accounted for 108.5 tonnes in the second quarter of 2011, a 78 % increase over the year-ago period. I
n value terms, investments totalled to Rs 23,510 crore in second quarter of 2011, an increase of 119% as compared to corresponding quarter in 2010

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