According to the “World Gold Council”, Import of Gold by
India, the world's largest buyer, more than doubled in the second quarter of
2013 after a slump in prices in April spurred demand for bars and coins
Inbound shipments climbed to 338 metric tonnes in the three
months ended June 30 from 153 tonnes a year earlier, the London- based, producer-funded
group said in a report on Thursday. Total demand rose by 71% to 310 tonnes,
with consumption of bars and coins increasing to 122 tonnes from 56.5 tonnes
and sales of jewellery gaining 51% to 188 tonnes, the council said.
However, global demand fell to a four-year-low in the second
quarter, sliding 12% to 856.3 tonnes, from 974.3 tonnes a year earlier.
The surge in shipments to India prompted the government this
week to increase a tax on imports for a third time this year to contain a
record current-account deficit that's weakened the rupee to an all-time low.
Higher tariffs and central-bank rules linking overseas purchases to re-exports,
may cut imports in the second half to not more than 150 tonnes from 478 tonnes
in 2012 and spur smuggling, the All India Gems & Jewellery Trade Federation
said.
Full-year demand is seen at 900 tonnes to 1,000 tonnes in
2013 as a reduction in recycled supply, festivals and a good monsoon spur
consumption.
The curbs in India may help China overtake India as the
world's biggest gold consumer in 2013 as the dragon country has more favourable
policy on the precious metal as compared to the economy here, the WGC said in
the report. Gold consumption in China rose to 570 tonnes in the first half of
the current calendar year, slightly higher than 566.5 tonnes in India.
