Author: Paul Ploumis09 Oct 2014 Last updated at 08:27:11 GMT
NEW DELHI (Scrap Monster): The stocking up of gold by retailers and traders resulted in sharp surge in gold imports during the last week of September, lifting the month’s total gold import bill to highest during the past 15 months. The sharp fall in gold prices and the anticipated huge demand for the yellow metal during festive season led to higher gold imports.
The Sep ’14 gold import bill totaled $3.5-4 billion, the highest since May ’13 when the import bill had totaled $7.6 billion. On a year-on-year basis, the gold import bill witnessed a jump of nearly 500%. The country’s gold import bill had totaled $682 million during September last year.
Premium trading houses are believed to have purchased huge quantities of gold during end-September. The higher gold imports are on account of maintaining sufficient stock levels to meet rise in demand during festive and wedding season. However, gold retailers and traders stated that huge jump in gold imports is not attributed to increased gold demand. According to them, demand remained extremely subdued, despite cheap gold prices.
The rise in import and low-spirited demand has kept the gold premium for physical delivery under check. The premium in India has dropped to $16 per Oz over the London price, when compared with $20 per Oz during a week ago.
The country’s gold imports are likely to remain robust during the month of October as well. According to industry experts, India’s gold import bill for the entire year 2014 is expected to touch $35 billion.