India gold bullion imports from Switzerland rise sharply during 2014-2015

Author: Paul Ploumis
04 May 2015 Last updated at 07:59:47 GMT
NEW DELHI (Scrap Monster): Switzerland has turned out to be the preferred source of gold import among Indian gold bullion importers. The percentage share of Switzerland in overall gold imports by the country has recorded significant improvement over the past few years. Sources indicate that Switzerland is followed by the UAE, South Africa and Australia.

According to industry sources, Switzerland’s share in overall gold imports by Gujarat has grown considerably from 45% in 2011-’12 to as high as 80% in 2014-’15. Out of the total imports of 152.24 metric tonnes of gold imported through Gujarat during 2014-’15, nearly 122 metric tonnes were imported from Switzerland. Also, the overall gold imports by the state surged higher by 67% when matched with the net gold imports of 92 metric tonnes during 2013-’14.

The trend seems to be gaining further momentum in 2015. According to import data published for the month of March this year, out of 22 metric tonnes imported, 19 metric tonnes (ie., more than 86%) were sourced from Switzerland. The imports from other sources remained weak. The other key import sources were the UAE (1,450 kg), South Africa (740 kg), Australia (600 kg) and Turkey (350 kg).

Switzerland has the largest reserves of gold in the world. Banks and trading houses normally import gold directly from Switzerland, unless gold of a different quality is required or when it is required urgently. The easier procedures for gold shipment ensure fast movement of gold. Switzerland has better systems and procedures in place when compared with other gold reserves such as South Africa and Australia. Moreover, there is rarely any chance for duplication or fake gold, if imported from Switzerland. All these factors have contributed to the sudden rise in gold imports from that country, traders say.