India Gold Initiatives To Have Little Short-Term Impact On Imports

By Paul Ploumis (ScrapMonster Author)

November 11, 2015 02:51:07 AM

(Kitco News) -India’s new gold initiatives are unlikely to have an immediate impact on imports of the metal, says the consultancy Metals Focus. The government unveiled a Gold Monetization Scheme and Gold Sovereign Bond Scheme last week.

For some time, the government has been trying to limit gold imports due to the impact on the current-account balance.

“Overall, we believe that in the short term at least, these initiatives are unlikely to have a material impact on Indian gold bullion imports,” Metals Focus says.

“The key point here is that it will take time for the government and other stakeholders to create sufficient awareness across the market. Once this is achieved, investor participation should improve, although this is likely to favor urban, rather than rural, consumers.”

Courtesy: Kitco News