Chat with us, powered by LiveChat

March Gold Imports For India Surge 471% To Record 160 Tonnes

Switzerland exports gold
Print Friendly, PDF & Email

EDITOR NOTE: Global gold supplies were hit even harder last March as India’s gold imports surged 471% year over year. The purchases amounting to 160 tonnes were driven largely by retail demand. This recent wave of purchase will likely boost the price of gold in the near term, but the continued shortage in gold supplies coupled with longer-term demand due to global inflationary pressures will likely keep the gold bull market robust for years to come. As we began urging readers last January, now’s the time to load up on the yellow metal. We’re still in the early stages of a bull market in physical gold and silver. We know that most investors always miss the beginning of the bull and the end of the bear in just about every asset class, be it stocks or commodities. That’s human nature, and it has been evidenced countless times throughout the history of every major market. In light of this, we’ve been giving you signals to help you do better than the averages. But you have to be willing to pull the trigger.

India’s gold imports in March surged 471% from a year earlier to a record 160 tonnes, a government source told Reuters on Thursday, as a reduction in import taxes and a correction in prices from record highs drew retail buyers and jewellers.

Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, which have corrected nearly 17% from an all-time high of $2,072 in August 2020.

The surge in imports could increase India’s trade deficit and pressure the rupee.

India imported a record 321 tonnes in the March quarter, up from 124 tonnes a year ago, the source said.

The source asked to remain anonymous since he is not authorised to speak to the media.

In value terms, March imports surged to $8.4 billion from $1.23 billion a year ago, he said.

In February, India slashed import duties on gold to 10.75% tax from 12.5% to boost retail demand and curtail smuggling into the South Asian country.

“Many consumers had postponed buying due to higher prices. They rushed to buy after prices corrected sharply,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the city of Kolkata.

In March, local gold futures hit a one-year low of 43,320 rupees per 10 grams.

Jewellers were building inventories after seeing robust retail demand, said a Mumbai-based bullion dealer with a gold importing bank.

“Throughout the month gold was trading at premium because of jewellery demand,” the dealer said.

Last month dealers charged premiums of up to $6 an ounce over official domestic prices, inclusive of 10.75% import and 3% sales levies.

India’s gold imports in April could fall below 100 tonnes as jewellers fear government could impose lockdown to arrest rising coronavirus infections, the dealer said.

India reported 72,330 new COVID-19 infections overnight, data from the health ministry showed on Thursday, the highest since Oct. 11.

Originally posted on Reuters

Bank Failure Scenario Kit - sm2



  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions