Imports of gold into India - which accounts for a fifth of the world's gold consumption - is expected to fall by about 15-20 per cent because of the slowdown in the economy and volatility in gold prices, experts say.
Though the World Gold Council in India has yet to release its import projection for the year, sources say it would be around 600 tonnes this year. In 2008 India imported 720 tonnes of gold, down 16.5 percent on the previous year.
In 2007, close to 600 tonnes were consumed for making jewellery, including recycled gold that accounted for 20-25 per cent of that figure, however, in 2008, only 500 tonnes were consumed. This is expected to drop marginally in 2009.
According to some major jewellery retailers, though jewellery offtake suffered a drop initially, it is slowly picking up. “Gold is still considered to be a good investment; people will not stop buying jewellery,” said Mr Babu Emmanuel, Managing Partner of OKJ Jewellery.
In the last three years, it appreciated by close to 54 per cent, and in the last year alone it appreciated by 24 per cent. “We are sure of maintaining at least last year’s level of sales, if not a marginal drop,” he said.
Source: The Hindu Business Line
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