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Gold imports in India likely to plunge
Posted on: 06/Aug/2015 6:43:56 PM
India`s gold import is likely to fall by 18 percent to $28 billion this fiscal year. This is due to the lower prices in spite of large volumes, says the country`s biggest gold refiner.
After oil, India`s second biggest expense made on import is gold. With about $54 billion in the past two years, there was an increase in duty to the metal by 10 percent.
Rajesh Khosla, the managing director of MMTC-PAMP India Pvt Ltd speaking in a conference said as there is a dip in price of gold and the metal is likely to fall further, the import is likely to be $28 billion.
India which stands second in consumption of gold after China imported around 930 tonnes of gold worth $34.32 billion by the end of March 2015. In late July, the price of Gold hit a historic low as low as $1,077 an ounce.
According to Mr Khosla, prices could fall further below up to $1,000 in another few months as the interest rates are likely to be increased by the US Federal Reserve. He added that the price of gold is impacted by the uncertainty of prices. Most people think problems in the world in this regard is sorted out and that there is no risk with buying the yellow metal. This metal is considered as a very good investment at times of economic uncertainty.
As far as the volume of gold import in the country in 2015-16 is concerned, it is likely to be anywhere between 900 and 1000 tonnes as the lower prices will surge the demands during the festive season that falls by the end of the year.
As there are festivals like Diwali and Dussehra that fall by the end of the year, the demand for gold jewelry increases by the time.
