130,000 oz of Gold / year - Q4 2009
Exploration & production. Properties in Nicaragua, Colombia, Panama & Russia
Message: OT: Growth Demand For Gold In India
I would argue though that China is buying and mining massive amounts of gold. The Chinese gov't has been coy on how many tons of gold it really has. A good read for the long weekend anyhow. SMF
Growth in demand for gold in India higher than China
Gold consumption reflected a strong revival over last year as Indian households flocked retail outlets to purchase gold jewellery owing to a fall in price of the yellow metal
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NEW DELHI: Gold consumption reflected a strong revival over last year as Indian households flocked retail outlets to purchase gold jewellery owing to a fall in price of the yellow metal. As against a decline of 13% in global demand for gold, India reported a 27% increase in Q1 2013, surpassing China's demand growth of 20%.
While demand for jewellery increased by 15% to 159.5 tonnes as compared to Q1 2012, investment demand witnessed a significant rise of 52% at 97 tonnes in the January to March period this year, said a recent report released by the World Gold Council (WGC). The government on Thursday also slashed the import tariff value of gold to $466 per 10 grams from $472 per 10 grams.
"Demand growth was largely driven by rural households whose incomes benefited from a good late harvest," the report said. A 4% decline in local gold prices over the quarter further prompted jewellery purchase during the wedding season. Gold prices fell by Rs 500 to a one-month low of Rs 26,800 per 10 grams in the capital on Thursday. While domestic prices fell by over 3% during Q1, in April alone, gold prices fell by nearly 18% due to global factors.
"Price fluctuations in gold recently have only served to reinforce Indian consumers' appetite for purchasing physical gold. Gold is a time-tested asset class...with the ongoing wedding and festive season; we believe demand for gold will continue to remain robust. Restrictions on the supply side will not hamper demand," said WGC India managing director Somasundaram PR.
In a bid to address the issue of a widening current account deficit, the government had increased the import duty on the precious metal from 4% to 6% earlier this year. The central bank too has decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.
"An increase in import duties in January has failed to take the wind out of the market's sails. The Indian market was well prepared and stock building during Q4 ensured a decent level of trade inventories heading into the first quarter," the report said.
According to the WGC, gold import in India is likely to be in the higher range of 865-965 tonnes this year as against an import of 860 tonnes in 2012. Despite an increase in consumption demand, gold imports reported a 6% decline in Q1 2013. While globally, demand for both jewellery and bars and coins reflected an increase, ETFs reported a net outflow of 177 tonnes during the quarter.
While demand for jewellery increased by 15% to 159.5 tonnes as compared to Q1 2012, investment demand witnessed a significant rise of 52% at 97 tonnes in the January to March period this year, said a recent report released by the World Gold Council (WGC). The government on Thursday also slashed the import tariff value of gold to $466 per 10 grams from $472 per 10 grams.
"Demand growth was largely driven by rural households whose incomes benefited from a good late harvest," the report said. A 4% decline in local gold prices over the quarter further prompted jewellery purchase during the wedding season. Gold prices fell by Rs 500 to a one-month low of Rs 26,800 per 10 grams in the capital on Thursday. While domestic prices fell by over 3% during Q1, in April alone, gold prices fell by nearly 18% due to global factors.
"Price fluctuations in gold recently have only served to reinforce Indian consumers' appetite for purchasing physical gold. Gold is a time-tested asset class...with the ongoing wedding and festive season; we believe demand for gold will continue to remain robust. Restrictions on the supply side will not hamper demand," said WGC India managing director Somasundaram PR.
In a bid to address the issue of a widening current account deficit, the government had increased the import duty on the precious metal from 4% to 6% earlier this year. The central bank too has decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.
"An increase in import duties in January has failed to take the wind out of the market's sails. The Indian market was well prepared and stock building during Q4 ensured a decent level of trade inventories heading into the first quarter," the report said.
According to the WGC, gold import in India is likely to be in the higher range of 865-965 tonnes this year as against an import of 860 tonnes in 2012. Despite an increase in consumption demand, gold imports reported a 6% decline in Q1 2013. While globally, demand for both jewellery and bars and coins reflected an increase, ETFs reported a net outflow of 177 tonnes during the quarter.
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