India's gold imports may touch 800 tonne in 2012: WGC

Tags: Gold, India, WGC, News
India's net gold import for domestic consumption is likely to be about 800 tonnes

RELATED ARTICLES

this year following a pick-up in demand during the festive season, according to the World Gold Council (WGC).

Last year, the net import for domestic consumption was 969 tonnes.

"The first two quarters the demand was not that great following economic downturn, monsoon deficit, duty issues and jewellers strike, high prices. However, it picked up last month in the festival season and this year we expect the gold demand to be around 800 tonne," WGC Director (Investment) Amresh Acharya told PTI.

2011, he said, was an extraordinary year and the demand was very high and so were the imports. In the long run, he said, the demand for the precious metal remains strong.

Talking about China, he said, even as the demand during quarter three was weak, it is picking up. Quarter four in China is usually strong due to festival season.

"By the end of this year, we still hope that China may still become the largest importer of the yellow metal overtaking India by a whisker," he said.

India is just 20 tonne ahead of China at present.

China is not only becoming one of the largest consumer, but also is one of the major producers. "The jewellery demand in China is very high, driving the imports," WGC Director, Investment, Stephen Richardson said.

Jewellery is the largest growth driver for the yellow metal. However, with increasing awareness, gold electronic traded fund (ETF) is gaining ground globally, he said.

"The investment is catching up in the matured markets and will become one of the a major growth driver for gold in future," he added. However, in India and China, even as ETF is gaining, it is a low start, he said.

"In both the markets, ETF is not very high. There is a need for more awareness and the market to become sophisticated for the ETF to gain more grounds."

The investment demand in India for January to September 2012 stood at 207.3 tonne (Rs 58,725.1 crore).

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture