Wednesday, April 17th 03:53 PM IST

Price slump could lift India Gold import to 900 tons

# India gold reserves  # import tariff value  # gold imports  

Indian gold markets became active after prices dropped as consumers have been buying jewelry earlier than planned to take advantage of the price decline.

NEW DELHI(BullionStreet): Recent slump in gold prices could boost imports of the yellow metal into India, world's largest gold consumer, industry experts said.

According to Mumbai Jewellers Association, Indian gold imports are likely to rise to around 900 metric tons this year thanks to falling prices coinciding with the peak marriage season, industry executives said Wednesday.

Prithviraj Kothari,MD, RiddiSiddhi Bullions also said current sentiments are favoring gold imports to hit 900 tons. India imported 860 tons last year.

Indian gold markets became active after prices dropped as consumers have been buying jewelry earlier than planned to take advantage of the price decline.

Indian gold prices have tumbled in the domestic market by more than 11.75% in the past five days.

Unlike other countries, Indian obsession with gold has more to do with traditional linkages.Nearly 50% of the gold bought in India is in the form of jewellery for the purpose of weddings and there’s a legacy aspect to the metal as well.

The demand pick-up is mostly in jewelry, brought about by the marriage season during which gold is a traditional gift, the executives said. Jewelry accounts for about 70% of Indian gold demand.

Prices fell last week at the quickest pace in 30 years, reviving consumer appetite damped since January-end when the gold import tax was raised to 6% from 4%.

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