Smuggled Gold to India Totalled Nearly 50 Tonnes So Far This Year

SEATTLE (Scrap Monster):  The World Gold Council (WGC) estimates that a total of around 40 to 50 tonnes of gold have been smuggled to India so far this year. The announcement was made by WGC’s India Managing Director P.R. Somasundaram. It must be recalled that nearly 100 tonnes of the yellow metal were smuggled into the country during the whole of 2018.

According to WGC, the gold smuggling in India during the full year 2019 is not expected to surpass the 2018 levels, mainly on account of subdued gold demand in the wake of historic high price level. This is despite anticipated increase in gold smuggling during the third and fourth quarters of 2019, due to recent hike in gold import duty from previous levels of 10% to 12.5%.

RELATED: Smuggled Gold Seizure Soared 23% in Q2 2019

As per estimates, gold smuggling recorded huge year-on-year decline by almost 15% during the three-month period from April to June this year. However, it spiked during the recent three-month period, when domestic gold prices in India surged higher to hit life-time high. Nearly 30 tonnes of gold is expected to have entered the country through unofficial channels during the past two months alone.

WGC also noted that imports of gold dores have almost dried up during the recent months. The projected drop in demand for gold is likely to impact the operations of many bullion refineries in the country.