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India's gold imports could rise in 2011

Release Date: 
Wednesday, January 5, 2011

The world's largest consumer of gold, India, could increase its imports of the metal in 2011. Despite record prices for gold, demand still appears to be increasing as Indian citizens look for a hedge against inflation and expand their purchases of jewelry.

According to broker Nirmal Bang Commodities Pvt., India's gold imports could be as high as 810 metric tons this year. Anjani Sinha, the chief executive of the National Spot Exchange Ltd., the country's largest exchange for the gold trade, said that "demand is very good, even at higher prices." In an interview in Mumbai, Sinha said: "People still believe prices may go up further. The scenario in 2011 will be as good as in 2010."

The Bombay Bullion Association announced on January 3 that India's gold imports in 2010 were about 700 tons, while World Gold Council figures show 2009 imports at about 500 tons. This uptrend was fueled not only by investors searching for a safe haven asset, but also by an uptick in jewelry consumption as Indian citizens have enjoyed higher average incomes.

Ultimately, gold purchases in 2011 could moderate if prices continue to rise, says Prithviraj Kothari, President of the Bombay Bullion Association. However, he notes: "Demand in India is still there." 

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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