Life in the time of demonetisation: Rural gold hubs silent
By GCRU Gold News on Friday, December 16 2016, 02:11 - Permalink
Jewellers and bullion dealers in India are refraining from buying gold despite the dip in price, thwarted by subdued demand in rural areas due to the demonetisation-induced cash crunch.
Rural areas account for 60% of India's gold consumption, which has fallen after the government `s demonetisation move. Although there are signs of a gradual recovery in urban demand, the sentiment remains negative because of patchy buying in rural areas where purchases are in cash.