India Catches Gold Fever, Imports Set for Big Leap

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)

18 November 2010  

India Catches Gold Fever, Imports Set for Big Leap

 

MUMBAI: India's gold imports, which had already exceeded 2009 levels, is likely to cross the 750-tonne mark this year due to increasing consumer demand for jewellery despite soaring prices, the World Gold Council (WGC) has said.

"Going by the trend, its good to estimate that the gold imports would cross the 750-tonne mark this year, a level earlier achieved in 2007. We have already crossed last year's total imports by almost 100 tonnes in the third quarter to reach 624 tonnes," WGC Managing Director, Middle East and India, Ajay Mitra told reporters here today.

In 2009, the total imports stood at 559 tonnes. He was talking to reporters after releasing a report on gold demand trends in Q3, 2010.

In Q3 2010, India, the world's largest consumer of the yellow metal, has bought 214 tonnes of gold compared to 176 tonnes in the same quarter in 2009.

Gold jewellery demand in India in the July-September quarter surged 36 per cent to 184.5 tonnes from 135.2 tonnes in the corresponding period last year, the report said.

The total gold demand rose 79 per cent to 650.4 tonnes in the January-September period compared to 363 tonnes in the same period in 2009, indicating a robust demand, Mitra said.

"We expect this phenomenon to continue. With the wedding season coming up and two months still remaining until the end of 2010, we anticipate that Indian gold will continue to reach greater heights," he said.

Source : timesofindia.indiatimes.com