India Gold Imports Hit Lowest Level in Ten Years

SEATTLE (Scrap Monster): The gold imports by India during 2020 slumped to the lowest level in more than a decade.

The logistics restrictions and falling demand on account of Covid-19 pandemic coupled with record-high prices of the yellow metal resulted in lower level of import during the year. The cancellation of flights on account of pandemic-related travel bans impacted gold imports, as the country imports most of its gold requirement from overseas markets.

As per unofficial data, the India gold imports totalled around 275.5 tons last year. This is the lowest imports seen after 2009, according to World Gold Council (WGC) data. However, the imports picked up towards the end of the year, with December 2020 imports surging higher by 18% in comparison with the same month a year before.

According to All India Gem & Jewellery Domestic Council, the retails sales, which had hit near-zero level during the national lockdown earlier this year, have started to pick up momentum. However, the industry foresees major activity in gold market only during the festive season month towards the end of the current year.

The fears of further economic worries, on account of subsequent waves of the pandemic, are likely to keep gold’s safe-haven appeal intact. Apart from Covid-19, the new variant of Covid-19 is also feared to cause distress in the near term.

YOU MAY ALSO BE INTERESTED IN:

India Gold Bar Imports Plummeted 91%

GJEPC: Government Must Reduce Duty on Gold Imports