India remains largest importer of gold in 2011: WGC

India remains the largest country for demand with 933.4 tonnes, which is notable considering the volatility of the gold price and the weakness of the Indian rupee against the US dollar during the second half of the year.

In value terms, total demand reached Rs. 220,507 crores, an increase of 22% from Rs. 181,107 crores in 2010, which was in turn an increase of 98% from Rs. 87,430 crores in 2009.

In terms of tonnage, gold jewellery demand reached 567.4 tonnes in 2011, a decline of 14% from 657.4 tonnes in 2010. This was an increase of 49% from 442.4 tonnes in 2009.

In value terms, total jewellery demand reached Rs. 134,043 crores, an increase of 13% from Rs. 118,314 crores in 2010, in turn a rise of 75% from Rs. 66,860 crores in 2009.



In tonnage, gold investment demand reached 366 tonnes in 2011, an increase of 5% from 348.9 tonnes in 2010. This was an increase of 156% from 136.1 tonnes in 2009.

In value terms, total investment demand reached Rs. 86,464 crores, an increase of 38% from Rs. 62,793 crores in 2010, which was in turn an increase of 205% from Rs. 20,570 crores in 2009.

India experienced a slowdown in demand reduction in tonnage in 2011, a result of high and volatile prices, and challenging economic conditions.

The average price of gold per gram stood at Rs. 2,362 in the year 2011 as compared to Rs 1,800 in 2010, an increase of 31 percent.