GOLD NEWS

India to import more gold this year than earlier thought - WGC

Speaking at the launch of its wedding jewellery brand, Azva, WGC Director Vipin Sharma said the country could import as much as 800 tonnes of gold this year.

Author: Shivom Seth
Posted: Tuesday , 06 Nov 2012

MUMBAI (MINEWEB)  - 

It is not just Indian bullion retailers who are gearing up for the festival of lights in India next week.

The World Gold Council too has noted a significant jump in sales from end-October and early November, in a run-up to the festival.

India's import of the precious metal could be appreciably higher than was earlier envisaged, according to the Council. At a press conference, the global organisation said that India could import around 800 tonnes this year, way more than the 640 odd tonnes that was spoken about earlier this year.

India imported around 933 tonnes during 2011. Despite the fact that the demand for the yellow metal was low for the first half of the year, the Council said it expects the market to pick up momentum in the festival and wedding season, momentum that should continue till the end of the year.

Despite a dip of 8% in the yellow metal's value in the first six months, the World Gold Council has said demand for gold has been ``fairly robust in the long run''.

India has one of the world's highest savings rates, at over 30% - more than double the United States. The bulk of the country's $800 billion in savings is parked in gold.

India and China have continued to dominate global consumer demand, accounting for a combined 45% of total jewellery and bar and coin demand for the second quarter of 2012.

The Council today launched its wedding jewellery brand Azva, inspired by the seven vows, in Chennai, South India. Initially the collection is to be available in the four metros, which will be expanded to 20 other cities of India in a phased manner, Council director Vipin Sharma said.

On November 6, gold prices rose in major metros in India. In the Mumbai market, standard gold was up $4.96 (Rs 270) at $573.66 (Rs 31,220) for ten grams.