India Gold Imports to Hit 17-Year Low in 2020

SEATTLE (Scrap Monster): The gold imports in India during the calendar year 2020 are likely to record huge decline. The yearly imports are expected to total around 350 tonnes this year, which is almost equivalent to the lowest level recorded in 2003. The projected imports are 50% lower from the previous year.

The gold jewellery demand in the country has been severely impacted by prolonged lockdown across the country and sky-high domestic gold prices. The recent data published by the World Gold Council (WGC) indicates that the gold imports by the country had totalled only 78.4 tonnes in the initial quarter of the year. The imports dropped further to total merely 11 tonnes in the second quarter.

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As per data, the gold import bill during the initial six-month period of the current year amounted to $5.86 billion.The latest trends suggest that the imports have failed to pick up in July as well. It must be noted that the country had imported 647 tonnes of gold in the previous calendar year.

According to industry experts, the huge impact caused by Covid-19 on the economy is likely to significantly curtail discretionary spending by consumers on high-value items such as gold jewellery.

Meantime, investments in gold have shifted to other instruments such as sovereign gold bonds (SGBs) and gold-backed ETFs.