Gold and silver imports increase sharply in India 2011

9:56 PM

Unknown

Gold and silver imports increase sharply in India 2011
mines,gold,silver,oil,gazz,coal,prices,market,asia, europa,america,africa

Imports of Gold and Silverby India are soaring thanks to an unabated demand for the bullion commodities. While India’s import of gold has risen were up by 76% and 160% in April and May respectively, silver import was up by 22% in the same period compared to last year.

According to UBS, India continues to be a robust centre of attraction for gold bullion sales. UBS said that gold and silver imports are set to soar in India in 2011 thanks to an unprecedented consumer demand for these commodities.

Gold and silver imports in India increase sharply

“While import volumes rather than values would be much more accurate, given the run-up in gold and silver prices in May, the figures still provide a good indication of the country’s robust appetite for precious metals,” said Edel Tully, precious metals strategist at UBS in London.

According to World Gold Council (WGC), gold and silver demand from India amounted to 963.1 tonnes in 2010 – a 66% rise on the previous year.

India is the largest consumer and importer of gold and silver in the world.

Last week, India’s state-owned trading company—Minerals and Metals Trading Corporation (MMTC)—said that it would import 350 tons of Gold and 1,200 tons of Silver in 2011-12 as demand for the precious metals is rising fast.

“We plan to 350 tons of gold and 1,200 tons of Silver in the 2011-12 fiscal as the domestic demand for these metals are fast rising,” MMTC Marketing Director Ved Prakash told reporters.

India is one of the largest importers and consumers of Gold and silver in the world. As the domestic production of these precious metals is negligible compared to their rising consumption, India has been importing hundreds of tons of gold and silver every year.

Prakash said that import of gold by MMTC in the current fiscal is expected to increase by more than 40 per cent with the yellow metal fast emerging as a safer investment option.

“We are stepping up import of Gold this fiscal due to rising demand for the nobel metal. Also, its value as a safe option, in the current volatile market, is rising,” he said.

The company almost doubled its import of gold at 45 tonnes during the April-June quarter this year compared to the same period last year, he added. He said besides gold, the demand for Silver is rising as it gives better returns.

Silver prices have been touching new peak in India thanks to robust demand amid short supply in the global market.

Majority of silver in India is used in the production of ornamental items like jewellery, utensils and gift articles. Every year, India buys more than 4,000 tonnes of silver and over 960 tonnes of gold. – Source: http://www.commodityonline.com