Gold imports by India, the biggest consumer, may climb this year as record prices fail to deter buyers and investors seek a hedge against inflation, according to broker Nirmal Bang Commodities Pvt.
“Demand is very good, even at higher prices,” Anjani Sinha, chief executive officer of the National Spot Exchange Ltd., India’s biggest bourse for trading physical gold, said in an interview in Mumbai. “People still believe prices may go up further. The scenario in 2011 will be as good as in 2010.”
Imports this year may total 650 tonnes to 700 tonnes, up from 650 tonnes last year, Sinha said. Purchases in 2010 may exceed 750 tonnes, the World Gold Council said November 17. The country bought 559 tons in 2009, according to the producer-funded group.
Prices
Gold and silver took a severe beating at the bullion market in Mumbai today on hectic speculative sell-off triggered by heavy unwinding at global markets.
The overseas market witnessed heavy sell off in the precious metals in overnight trade as a strong rally in the dollar on the back of strengthening US economic recovery prompted heavy correction which followed suit by speculative domestic traders who relies heavily on international trend. Silver, which was on a relentless rally recently, lost momentum and closed below the Rs 47,000-mark. Standard gold (99.5 per cent purity) tumbled by Rs 245 per 10 gm to end at Rs 20,385 from Tuesday's closing level of Rs 20,630.