How’s the feeling being India regional head at WGC? Please share your initial thoughts. What’s first on the agenda for you at WGC?

India is the second largest gold consumer, and I am quite pleased to have joined World Gold Council. We are committed to enhancing consumer trust and promoting gold as an asset while exploring innovative ways to showcase the intrinsic value of gold jewellery. Wanting to ensure it remains a cherished possession while also aligning with contemporary trends and lifestyles. These are exciting times for gold. The work that this organisation has done and is doing in is quite commendable and appreciated by various stakeholders. 

Strengthening stakeholders’ engagement and promoting responsible and sustainable practices are paramount for the long-term growth of the gold industry. We at World Gold Council are committed to fostering collaborations with industry players, regulators and government to drive positive the change. I intend to prioritise initiatives that promote ethical sourcing, transparency, and environmental sustainability across the gold value chain and also look at driving innovation and responsible growth of the market. I will be focusing on; from making gold jewellery attractive to the youth to launching the gold industry SRO (Self-Regulatory Organisation) later this year and making the case for gold as an investment asset. I am also working on creating a common theme for the industry to communicate and develop consumer demand, to begin with our campaign ‘you are gold’ to enrich consumer demand in the coming season. 

What’s your overview of the current gold – bullion and jewellery- sector in India?

This year gold remains one of the best performing asset classes with a 12% return y-t-d. The surge in gold prices since the start of the year was driven by geopolitical tensions and macroeconomic uncertainty. It is likely to continue in the remaining period of 2024. Despite potential price fluctuations, India’s enduring affinity for gold, as seen in Q1’24 demand, remains strong. Factors like festivals, weddings, and a normal monsoon forecast could sustain demand. Our forecast for 2024 anticipates a gold demand of 700-800 tonnes, with potential variations based on price movements and economic conditions. However, it’s essential to monitor geopolitical developments and economic indicators closely, as they can significantly influence gold prices and consequently, India’s position in the global gold market.

How will your experience with De Beers help you as navigate the gold sector in India?

Gold and Diamond are distinct markets, but they overlap at times, especially when it comes to consumer sentiment and jewellery segment. My tenure at De Beers and earlier experience has provided me with invaluable insights into market dynamics, and consumer behaviour. I plan to leverage this in my approach to the gold industry in India and help drive initiatives and strategies to promote investments and consumption of gold as investments and jewellery.

Your extensive experience has given you insights into retail, consumer behaviour, market trends. How will you leverage it in the marketing and branding strategy at WGC?

My prior experiences have helped me extensively to understand retail consumer behaviour, market trends in the industry. With this the aim will be to create awareness around investments in gold, enhance the trust among stakeholders and promote fair and best industry practices.

Akshaya Tritiya has been very positive for Gold jewellery retail trade. Will the positive sentiment carry on through to the festive season?

In India, festival celebrations are incomplete without gold in it. The demand momentum surrounding the Akshaya Tritiya festival, a traditional auspicious day for gold purchases, proved to be rather short-lived. Market reports suggest that while strong buying exceeded expectations during the festival, gold purchases, particularly jewellery, tapered off afterwards, reminiscent of the lacklustre demand during March and April owing to high price levels. A further price rise to a record high in mid-May also dampened demand during what is the usual low-season for gold, from mid-May to July. But there have been reports of momentum buying during this period, especially of bars and coins, driven by positive consumer sentiment towards gold as an attractive investment amid the recent price surge.

The current trend of subdued jewellery demand is expected to continue over the next few months with a potential uptick anticipated during the onset of the festival season in the latter half of Q3. Conversations with the industry suggest that manufacturers are choosing not to increase their inventories at this time but could build stock as early as August, with activity picking up steam as the quarter progresses.

But investment buying through bars and coins is likely to persist in line with the current trend: from January to March bar and coin demand rose by 19% y/y to 41t.

Largely, the overall annual demand is expected to stay resilient, given the larger economic indicators that are positive.

High gold prices have led to increased demand for 18k jewellery – and the recent call by trade to hallmark 9k jewellery which is an affordable entry point is an indication of reduction in gold content in jewellery. Your comments?

Hallmarking is good for the consumers as it ensure purity of the metal. The request from industry to hallmark 9k gold jewellery is a step in a right direction. It will further boost consumer trust in gold jewellery although the sales below 14k gold jewellery is almost negligible in India.  However this could change in future. 

How much percentage of the gold jewellery retail market has been covered by hallmarking? Has hallmarking achieved its objective of instilling confidence in consumers?

The government of India mandated hallmarking of gold jewellery in 2021. The coverage for hallmarking has increased and we have Assaying and Hallmarking Centre (AHC) in over 343 districts in India. Since the implementation of mandatory hallmarking, number of registered jewellers have increased from 34,647 to 1, 81,590, while Assaying and Hallmarking Centers (AHCs) have increased from 945 to 1471. More than 26 crore articles of gold jewellery have been hallmarked with HUID so far. Consumers are encouraged to verify the authenticity and purity of the hallmarked gold jewellery items with HUID number purchased by using ‘verify HUID’ in BIS Care app on mobile phones. In our opinion, hallmarking has helped boost consumers’ confidence in the purity of gold jewellery they are buying.

What initiatives are being taken to engage with various with stakeholders in the gold sector?

Recognising India’s deep-rooted cultural affinity with gold, the World Gold Council tailors its strategies to resonate with the country’s unique dynamics. With a shifting demographic landscape, our approach evolves accordingly. To promote gold as category we have ‘You are Gold’ and ‘Power Your Portfolio’ marketing campaigns. Our recent ‘You Are Gold’ campaign, launched in February, aims to rejuvenate the connection between millennials and Gen Z with gold in India. Embracing a diverse audience, we position gold as a symbol of empowerment for today’s youth, celebrating their courage and resilience. We aim to address doubts and insecurities and foster investments in gold by highlighting its versatility and role as a powerful form of self-expression. As mentioned earlier, we are at the cusp of launching SRO and launching another campaign targeted in promoting gold ETF’s.  

WGC is at the forefront of promoting responsible, ethical practices and transparency in the industry. Kindly comment on the WGC promoted SRO for the gold industry.

India’s gold industry has evolved significantly, with initiatives aimed at improving cohesion, compliance, and confidence. An SRO would elevate industry standards, enforce best practices, and allow participants to demonstrate adherence to these standards. This would provide a reputable and independently audited brand, signalling trustworthiness. As the SRO’s standards and certification gain recognition, consumers will easily identify and prefer trustworthy businesses, leading to increased consumer confidence. Over time, this will create a positive cycle, encouraging more businesses to seek certification, thereby enhancing overall industry trust and potential. The SRO will be announced later this year.