India Plans to Increase Gold Imports in 2011
Due to growing demand for gems and...Gold imports to India are likely to rise by 15 percent this year to around 805 tonnes due to growing demand for gems and jewelry, an industry expert said today.
"The demand for jewelry is growing and we expect the imports to grow by 10-15 percent this year. In 2010, the total gold imports stood at 700 tonne," said All India Gems & Jewellery Trade Federation chairman Vinod Hayagriv. He believes there will be a price correction on gold leading up to 2012.
"I think presently the prices of the precious metals are overheated and there will definitely be a correction. However, this correction will not be immediate and will be somewhere around 2012," he said.
He suggested gold prices to drop in the range of $1,200 to $1,300 per ounce (28.34 grams) from the current $1,374.10 an ounce, he said.
In India, the gold prices might come down to Rs. 18,500 to Rs. 19,000 per 10 grams from the current Rs. 20,500 per 10 grams. But silver looks very promising and is likely to climb up further.
"Silver is very hot at the present and may go up to Rs. 50,000 to Rs. 60,000 per kg in next six months from its current Rs. 45,300 per kg level," he said.
On diamond prices, he said, the prices will definitely go up as there is shortage of rough diamonds due to decline in mining.
By: Press Trust of India
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