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Trying to tap the falling gold prices, lakhs of jewellers across the country are increasing their inventory levels.
Around 225 tonne of gold was imported in India in the last two months ahead of the Diwali festival and the marriage season. Almost a fourth of that has been used to replenish dwindling stocks.
In the past few weeks, gold prices fell to Rs 26,000 per 10 gram in India and $1140 in the international market. Today, gold is trading around $1190-1200 per ounce.
With the official imports going up, smuggling is estimated to have moderated.
An industry official said that in the past one year, especially after the 80:20 rule came in to effect, jewellers were not keeping huge inventories as there were uncertainties on the demand front. However, with the demand reviving in the last few months, they are buying more gold now.
Stocks with jewellers had come down by 15-20% from levels recorded in 2013. But in the last couple of months, jewellers started increasing their inventory levels expecting revival in demand. Around 50-60 tonne of gold is estimated to have been used to replenish the stocks.
India’s gold imports, going by the trend in past few months have jumped significantly.
In September and October last year too, a large part of imports were used for replenishing stocks by jewellers.
