Gold News

New Poll: India Gold Bullion Imports Set to Drop

IMPORTS of Gold Bullion to India could fall 7% in 2012 compared to last year, according to the median estimate in a poll conducted by news agency Bloomberg.

India imported 969 tonnes of Gold Bullion over the course of 2011. The average estimate among analysts polled by Bloomberg is for 900 tonnes of Gold Bullion to be imported.

Silver Bullion imports, by contrast, should continue to rise this year, according to Prithviraj Kothari, president of the Bombay Bullion Association, who tells the Wall Street Journal that the figure could top 5000 tonnes – compared to 4800 tonnes last year.

"Silver demand is expected to rise on firm industrial and investment demand," he says.

Indian government advisors have urged the government to promote alternatives to Buying Gold, arguing that Gold Bullion imports are damaging for India's balance of payments.

Total Gold Bullion demand fell 7% by tonnage last year compared to 2010, according to the latest World Gold Council data. By Dollar value, however, it rose 16%, as a result of higher international Gold Prices.

India's Gold ETF demand meantime doubled in 2011, with many corporations and small businesses choosing them as a way to get exposure to Gold Bullion.

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