The influence of the Monsoon in India on Gold and Silver demand

Last year, precipitation was below average, with total rainfall reaching 94 percent of the long-term average. However, for 2024, precipitation is expected to reach 106 percent for the first time in eight years. The La Niña condition should also have positive effects. Because increased rainfall directly impacts agricultural production in India, it affects the incomes of those involved. Therefore, demand for gold and silver, especially jewelry, could increase in India this year solely for this reason. Rainfall in India occurs 80 to 90 percent from June to September (monsoon season). About 45 percent of Indian farmers rely on rain.

Approximately 65 percent of Indians live in rural areas, and nearly half of them derive their income from agriculture. Last year, when there was insufficient rain, demand for precious metals also decreased. Gold jewelry consumption decreased by around four percent. Silver is even more dependent on demand from the rural population than gold. So, silver demand fell by a whopping 25 percent in 2023. High prices were surely a contributing factor to the decline. The revival of the rural economy in India can be seen, for example, in two-wheeler sales, which increased by 25 percent in rural areas in the first quarter of 2024 compared to the same period last year. The central government has even announced a wage increase of three to ten percent for workers in the rural employment guarantee program. Whether Indians have become accustomed to higher precious metal prices and will buy more gold and silver in the good monsoon year of 2024 remains to be seen. In any case, the signs are favorable.

Here, investors can focus on gold companies, especially in the royalty sector, which also provides diversification. Successful companies in this field include Gold Royalty and Osisko Gold Royalties.

In North and South America, Gold Royalty – https://www.commodity-tv.com/ondemand/companies/profil/gold-royalty-corp/ – has streams and royalties in the gold sector.

Osisko Gold Royalties – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – stands out with over 180 royalties and streams in gold and copper. The company has just increased its quarterly dividend by eight percent.

For current company information and press releases from Osisko Gold Royalties (- https://www.resource-capital.ch/de/unternehmen/osisko-gold-royalties-ltd/ -) and Gold Royalty (- https://www.resource-capital.ch/de/unternehmen/gold-royalty-corp/ -).

According to §34 WpHG, I would like to point out that partners, authors, and employees may hold shares in the companies mentioned and thus a possible conflict of interest may exist. No guarantee is given for the translation into German. Only the English version of this news is valid.

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