A good monsoon not only brings the happiness of good rains and bountiful crops to the farmers, but also gives a booster dose to the country’s economy. Money increases in every village and the demand for gold too, we are not saying this, but the report of the World Gold Council says this.
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The general elections are going to be held in the country in the beginning of the year 2024 itself, which means that the last 6 months of the year 2023 are going to be very busy. At the same time, this year the monsoon is also expected to be good. And all these things have a big connection with the demand for gold, let us know how…
Due to the 2024 elections, the flow of cash in the villages of the country can increase. The reason, to woo the voters, the government can increase investment in the rural economy. Due to this, a boom can be seen in the rural economy. Meanwhile, if the monsoon is good, then the yield of the crop will also be good and this will bring more money in the hands of the farmers. That means gold demand will also increase from village to village. Let us know what the World Gold Council has to say about this.
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Gold demand can remain 850 tonnes
Somasanduram PR, India head of the World Gold Council, says that if the monsoon is good in the country, then the demand for gold can reach 800 to 850 tonnes. On the other hand, even if the monsoon is not good, the demand for gold in the country is estimated to be 700 to 750 tonnes.
The India head of the World Gold Council believes that due to the elections, cash flow will increase in rural areas. This may increase the purchase of gold, as gold is considered a good investment option among rural people.
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60 percent of gold is consumed in villages
The rural economy accounts for 60 percent of the total gold consumption in India. At the same time, apart from the Lok Sabha elections, elections are also to be held in about 6 states including Madhya Pradesh, Karnataka, Rajasthan. That’s why this demand can increase further in the village, especially after getting a good price for the crop after a good monsoon.
However, there is also a possibility of an El Nino effect this year regarding the monsoon. In such a situation, the monsoon rains may be slightly less. Although Indian farmers are prepared to deal with the effects of El Nino, it may not have much effect on the yield.
In the year 2021, the country consumed 797 tonnes of gold, while in 2022 this figure was 774 tonnes.