INDIA May 24 2017 2:53 PM
MUMBAI (Scrap Register): As the traditional period of peak demand in the second half of 2017 is approaching, India's gold imports is expected to fall. Ahead of the introduction of national sales tax, jewellers have started restocking inventories.
Global gold prices are expected to have an impact from India's lower imports as India is the world's second biggest consumer of the commodity. India's gold imports usually increases during the second half of the year due to the festive season and wedding.
“This (strong buying) trend will not continue in the coming months," as per James Jose, secretary of the Association of Gold Refineries and Mints. He also quoted "Ahead of GST, some people are stocking up fearing higher tax, but demand has been falling”.
Imports of unrefined gold will also fall sharply in the second half as new rules allow only refineries licensed by the Bureau of Indian Standards (BIS) to import gold from June 1. India imported about 142 tons of unrefined gold during 2016.