Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

GOLD SUPPLY AND DEMAND
INDICATIVE GROSS JEWELLERY FABRICATION
For the domestic market 2001 and 2000
Includes the recycling of old gold
Tonnes
Category 2001 2000
Jewellery & bar hoarding
(net usage) 603 617
Less
Increase in inventories 25 (25)
Increase in net bar hoarding* 20 (14)
Net sales 558 578
Add recycling
Exchange 279 254
Buy-backs for cash 65 65
Coins and bars 28 28
Sub-total 372 347
Gross sales 930 925
Add back
Increase in jewellery inventories 25 25
Gross fabrication 955 950
Table source: Grendon International Research
Basis: 40% increase in inventories since 1997. Net bar hoarding: 3% (2001) and 2% (2000) of imports. Recycling as a proportion of nationwide
sales, including exchange, buy-backs for cash and dishoarded bars and coins: 40% (2001) and 37.5% (2000). This table does not include recycling
through non-jewellery retailers. However, anecdotal evidence suggests that (outside Mumbai) most recycling occurs through jewellery retailers.
* Some analysts consider the amount of net bar hoarding to be higher.
An indicative estimate of gross jewellery fabrication for 2001 is 955 tonnes. It includes 372 tonnes of
recycled gold.
The table highlights the extent to which jewellery fabrication relies on the recycling of old jewellery, coins and bars.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET