Gold imports plummet in Dec: Report
26/12/2014 14:38
According to media reports, the country’s gold imports slumped in December amid overstocking by jewellers in anticipation of tighter import restrictions by the government to curb its current account shortfall. Imports of the precious metal plunged to 22 tonnes in the first half of December, compared to 151 tonnes in November, the All India Gems and Jewellery Federation told the PTI. “The surge in import in November was mainly driven by expectation of more restrictions by the Reserve Bank and not because of consumer demand. Till December 15, imports are at around 22 tonne and I don't think there will be any more shipments”, the trade body added. Gold imports had surged in November after the Reserve Bank of India (RBI) scrapped the controversial 80:20 rule that required traders to set aside 20 per cent of the gold imported for export purposes. With a decline in consumer demand for gold due to macro-economic factors such as falling inflation which dents the bullion’s appeal as a hedge against rising prices, and expectation of US monetary tightening next year, gold imports are likely to remain lower in the coming months. At the same time, importers are also demanding the government to reduce the import duty on the precious metal to 5 per cent from 10 per cent and take measures to curb the grey market for gold
26/12/2014 14:38
According to media reports, the country’s gold imports slumped in December amid overstocking by jewellers in anticipation of tighter import restrictions by the government to curb its current account shortfall. Imports of the precious metal plunged to 22 tonnes in the first half of December, compared to 151 tonnes in November, the All India Gems and Jewellery Federation told the PTI. “The surge in import in November was mainly driven by expectation of more restrictions by the Reserve Bank and not because of consumer demand. Till December 15, imports are at around 22 tonne and I don't think there will be any more shipments”, the trade body added. Gold imports had surged in November after the Reserve Bank of India (RBI) scrapped the controversial 80:20 rule that required traders to set aside 20 per cent of the gold imported for export purposes. With a decline in consumer demand for gold due to macro-economic factors such as falling inflation which dents the bullion’s appeal as a hedge against rising prices, and expectation of US monetary tightening next year, gold imports are likely to remain lower in the coming months. At the same time, importers are also demanding the government to reduce the import duty on the precious metal to 5 per cent from 10 per cent and take measures to curb the grey market for gold
