India to import record amount of gold this year

India is likely to surpass a thousand tonnes of gold for the first time this year. import, according to the All India Gems & Jewellery Trade Federation. Last year, India also imported a lot of gold, when the total volume was about 900 tonnes. The demand for gold has risen this year due to the decline in the price of gold, which has brought many bargain hunters to the market.

"For the first time, we are taking into account an import of gold that will break the barrier of 1,000 tons in a calendar year," said Bachhraj Bamalwa of the All India Gems & Jewellery Trade Federation. "Imports are increasing in order to take advantage of the significant decline in the Gold price".

Gold price in dollars fell to its lowest level in five years earlier this month, increasing interest in the precious metal. In addition, the value of the Indian rupee has risen against the dollar this year, causing Indian households to gain more Buy gold with their savings.

More gold imports

In the first nine months of this year, India has already imported 850 tonnes of gold, according to the All India Gems & Jewellery Trade Federation. This is much more than the 650 tonnes in the same period last year. "We expect an import of 150 to 200 tonnes of gold in the period from October to December," Bamalwa stated. Due to the weak harvest, a less strong fourth quarter is expected this year, but nevertheless the total for the whole year is likely to be higher than last year.

Last year, India imported 300 tonnes of gold in the fourth quarter, but then the figure was inflated by gold traders who feared new import restrictions on gold. They then stockpiled a bit more than usual. The import duty in India is still 10%, but there are voices calling for this levy to be lowered somewhat.

In the second quarter of this year, India's gold imports were relatively weak, but this was more than compensated for by a very strong third quarter. The drop in the price of gold in the month of July gave a direct boost to the demand for gold worldwide, as Concluded Also the World Gold Council.

Together with China, India is by far the largest market for physical gold. In both countries, the demand for the precious metal has increased sharply in recent years.

India imports more than a thousand tonnes of gold for the first time this year