"In India, gold demand for 2015 saw a marginal increase to 849 tonnes from 828 tonnes in 2014. In Q4, 2015 gold demand grew by 6% to 233 tonnes from 220 tonnes in the same period last year. Demand for gold has proven resilient in the face of a range of challenges, underlining the role of gold as an essential component of households' savings and reinforcing the need to bring gold into the financial infrastructure," WGC Managing Director India, Somasundaram PR said.

Gold prices soared by Rs. 215 to Rs. 28,800 per 10 grams at the bullion market on a firming trend overseas amid increased buying by jewellers to meet the ongoing wedding season demand. 19-month high, it is the longest winning streak for the yellow metal. The rupee was quoting lower by 30 paise to 68.15 against the dollar (intra-day) at the forex market. Silver, however, met with resistance at prevailing levels and eased by Rs. 130 to Rs. 37,100 per kg.

The bold approach exemplified by the launching the gold schemes towards the end of 2015, should be carried through with a singular focus on making gold fungible for the average household through the banking system, Somasundaram said. "The economy will benefit significantly by anticipating that gold demand will be robust," he added.

"The first half of 2015 was a difficult period for the industry. However, it recovered considerably in the second half with marriage and festival demand," Somasundaram said.

Gold investment demand declined by 9.47% at Rs 46,514.65 crore from Rs 51,381.63 crore last year. Total gold recycled in India also fell to 80.2 tonnes in 2015 as against 92.5 tonnes in 2014. Total jewellery demand for Q4 of 2015 was up by 6.39% at 173.1 tonnes compared to 162.7 tonnes in Q4 of s2014. The value of jewellery rise by 4.41% to Rs 40,595.36 crore from Rs 38879.15 crore in the same period of 2014.

By Premji