Gold import to Gujarat has increased by 10.80 per cent during the period April to January in 2009-10, thanks to investors increasingly preferring gold for investment. Also, jewellery buying has constantly remained good since the festive season of Diwali.
As per the data provided by Gujarat State Export Corporation Ltd (GSECL), the gold import to Gujarat has surged to 170.84 metric tonnes (MT) during period April-January, 2009-10 from 154.19 MT in the corresponding period previous year. Gujarat's gold imports in April-January in fiscal 2008-9 had declined by 11.40 per cent over the same period in 2007-08 due to recessionary pressures.
The improved demand for gold in the state could be guaged from the fact that gold imports to the state rose to 25 metric tonnes in January from 20.85 metric tonnes in December. The gold imports hovered around 13.10 metric tonnes in November.
The investors continued to buy gold as the yellow metal is cosidered to be a safe investment in volatile money markets. "The investment in gold has increased resulting into a higher gold imports," said Shantibhai Patel, president, Gem and Jewellery Trade Council of India (GJTCI). Currently, 15-20 kg gold is traded everyday for invesrtment purpose.
Infact, many investors across the country are turning to gold for investment. National Multi Commodity Exchange (NMCE) saw 100 per cent growth in physical delivery of gold guinea (8 gm) contract in January. The number of gold guinea coins delivered by the exchange increased to 195 from 97 in December.
"People think that gold is a safer investment instrument than shares and commodities. The yellow metal also offers better returns. Imports have moved up because gold buying for investment has picked up," said Balavantbhai Badani, president, Rajkot Gold Dealers Association.
Though gold jewellery buying has also improved in recent times with gold prices ruling at Rs 16,000 per 10 gm, which had earlier shot up to Rs 18,500 per 10 gm. "Since Diwali or October, demand in gold jewellery market has constantly remained good. This has also contributed to further rise in gold imports to the state," added Shantibhai Shah.