Post by jeffolie on Apr 26, 2009 12:12:48 GMT -6
India’s gold and silver imports begin to thrive
After two months of virtually nil bullion imports, India’s gold and silver market is beginning to shine. India has imported nearly 30 tons of gold and 60 tons of silver in April. And bullion analysts said gold and silver imports will surge in the coming months.
Accurate figures of bullion imports by India will come only by the first week of May. But provisional statistics from the Bombay Bullion Association said that gold and silver imports are beginning to pick after the bullion market was hit by virtually zero imports thanks to high gold and silver prices.
There were no gold and silver imports in India in the months of March and April. High global prices of gold and silver, dull gold sales and recession fears had turned India’s booming bullion market into a stagnant stage in the last two months. But analysts said bullion market in India is beginning to beam. “Gold and silver imports are picking up. Scrap gold sales are coming down as gold prices have fallen thanks to increased purchases during the festival season,” bullion analyst Anurag Mishra told Commodity Online.
Mishra said gold and silver imports by India will continue to increase in May and June, as these months are considered wedding and festival seasons. “I expect gold and silver imports to go up and it will boost the bullion market in India,” he added.
Gold prices came down by 10.80 per cent, or by Rs 285, to Rs 14,045 per 10 gm in the Mumbai spot market last week. Gold had hit the peak of Rs 15,745 on February 21. Silver prices have fallen fell by 10.93 per cent, or Rs 850, to Rs 20,690 a kg in the Indian bullion market. On India’s Multi-Commodity Exchange (MCX), the May silver contract is trading below Rs 20,000 these days.
Since gold prices are falling, demand for the yellow metal coins and jewellery have increased especially during the gold buying religious festival season Akshaya Tritiya, which falls on April 27.
A bullion analysis from Barclays Commodities says in the coming weeks, festivals like Akshaya Tritiya will lead to a boost in gold and silver sales in India.Traditionally, gold has provided good returns. According to the World Gold Council (WGC), gold is one of the most secure investment options available to Indian consumers.
“While the current economic condition may have dwindled returns from other forms of investment, Indian housewives, who have been passionate gold enthusiasts, and investors are still reaping high returns from their investments in the form of gold jewellery, coins etc,” said WGC in its latest study. According to WGC, gold has provided an annual average return of 26 per cent over the past decade (1999-2008).
India is one of the largest importers of gold and silver in the world. Global market meltdown has been forcing India’s bullion dealers to re-cycle scrap gold and silver materials leading to a big fall in the imports of gold and silver by India.
India used to consume around 3,000-4,000 tonnes silver an year a few years back. India’s biggest demand for silver comes from rural India, where agricultural output is determined largely by the June-to-September monsoon.
But in 2008, silver imports by India plunged to about 2,000-2,500 tonnes. Traders and industry association leaders said that silver imports in the country continued to be dull for the last three months of 2009. Now the bullion market is looking up as silver imports have started to pick up.
www.commodityonline.com/news/India%E2%80%99s-gold-and-silver-imports-begin-to-thrive-17212-3-1.html
After two months of virtually nil bullion imports, India’s gold and silver market is beginning to shine. India has imported nearly 30 tons of gold and 60 tons of silver in April. And bullion analysts said gold and silver imports will surge in the coming months.
Accurate figures of bullion imports by India will come only by the first week of May. But provisional statistics from the Bombay Bullion Association said that gold and silver imports are beginning to pick after the bullion market was hit by virtually zero imports thanks to high gold and silver prices.
There were no gold and silver imports in India in the months of March and April. High global prices of gold and silver, dull gold sales and recession fears had turned India’s booming bullion market into a stagnant stage in the last two months. But analysts said bullion market in India is beginning to beam. “Gold and silver imports are picking up. Scrap gold sales are coming down as gold prices have fallen thanks to increased purchases during the festival season,” bullion analyst Anurag Mishra told Commodity Online.
Mishra said gold and silver imports by India will continue to increase in May and June, as these months are considered wedding and festival seasons. “I expect gold and silver imports to go up and it will boost the bullion market in India,” he added.
Gold prices came down by 10.80 per cent, or by Rs 285, to Rs 14,045 per 10 gm in the Mumbai spot market last week. Gold had hit the peak of Rs 15,745 on February 21. Silver prices have fallen fell by 10.93 per cent, or Rs 850, to Rs 20,690 a kg in the Indian bullion market. On India’s Multi-Commodity Exchange (MCX), the May silver contract is trading below Rs 20,000 these days.
Since gold prices are falling, demand for the yellow metal coins and jewellery have increased especially during the gold buying religious festival season Akshaya Tritiya, which falls on April 27.
A bullion analysis from Barclays Commodities says in the coming weeks, festivals like Akshaya Tritiya will lead to a boost in gold and silver sales in India.Traditionally, gold has provided good returns. According to the World Gold Council (WGC), gold is one of the most secure investment options available to Indian consumers.
“While the current economic condition may have dwindled returns from other forms of investment, Indian housewives, who have been passionate gold enthusiasts, and investors are still reaping high returns from their investments in the form of gold jewellery, coins etc,” said WGC in its latest study. According to WGC, gold has provided an annual average return of 26 per cent over the past decade (1999-2008).
India is one of the largest importers of gold and silver in the world. Global market meltdown has been forcing India’s bullion dealers to re-cycle scrap gold and silver materials leading to a big fall in the imports of gold and silver by India.
India used to consume around 3,000-4,000 tonnes silver an year a few years back. India’s biggest demand for silver comes from rural India, where agricultural output is determined largely by the June-to-September monsoon.
But in 2008, silver imports by India plunged to about 2,000-2,500 tonnes. Traders and industry association leaders said that silver imports in the country continued to be dull for the last three months of 2009. Now the bullion market is looking up as silver imports have started to pick up.
www.commodityonline.com/news/India%E2%80%99s-gold-and-silver-imports-begin-to-thrive-17212-3-1.html