The World Gold Council (WGC) has said gold consumption of India is likely to falter in the June quarter as various states are imposing lockdowns to arrest rising COVID-19 cases, dampening the celebration of weddings and key festivals. Appetite for gold soared in the first quarter on pent-up demand after weddings were delayed in 2020 due to the COVID-19 pandemic. But an escalating crisis in India has prompted most state governments to impose curbs on the movement of people and asked non-essential business to close, dampening demand in the world's second-biggest bullion consumer.
Lower purchases could weigh on gold prices, which have recovered this year and risen 6% so far in 2021. But falling demand for gold imports could help narrow India's trade deficit and support the ailing rupee. Somasundaram PR, the managing director of the WGC's Indian operations said ‘Weddings, the Akshaya Tritiya (festival) are going to be a very muted affairs’. Gold consumption typically jumps in the June quarter due to weddings and key festivals such as Akshaya Tritiya, when buying gold is considered auspicious.
Somasundaram said India typically consumes around 200 tonnes of gold during the period but demand this year should be below that level. He said gold consumption in the second half of 2021 could rebound on pent-up demand and as economic activity recovers. India's economy is expected to grow by 11% in fiscal 2021/2022. Over the year, he said gold demand could be higher in 2021 than last year's 446.4 tonnes, which was the lowest since 1994.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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