Business Standard

Gold entry through smuggling estimated at 50 tonnes in Jan-Mar

WGC had earlier estimated around 200 tonnes of gold was brought into India through smuggling in calendar year 2013

Gold Coins
Gold image via Shutterstock
Related News

Around 50 tonnes of entered India in the first quarter (January-March) of 2014 through smuggling, estimates the World Gold Council (WGC), due to continued restrictions on through official channels.

“Broadly, we estimate 20-25 per cent of gold demand is met through smuggling, which continued in the first quarter of (calendar year) 2014 as well,” said Somasundaram P R, managing director of India at the issue of its Gold Demand Trend report for the period.

WGC had earlier estimated around 200 tonnes of gold was brought into India through smuggling in calendar year 2013.

“Gold continued to enter through unofficial channels and whilst the estimate of the grey market varies, there is now far great understanding of the adverse impact it is having on the Indian gold industry and genuine consumers,” said Somasundaram.

To curb the current account deficit, the Union government has restricted banks on import of gold coins and medallions.

India primarily imports gold jewellery from West Asian countries. Gold sales in the region rose to 66.2 tonnes in the first quarter of 2014, compared with 57.1 tonnes in the corresponding period last year. Gold sales in Saudi Arabia, Egypt and the UAE moved up nine per cent, 26 per cent and 16 per cent, respectively.

The government is concerned about the rise in smuggling and there are expectations that it will take some steps to control this. Overall gold demand is expected to moderate in the second quarter of 2014, since a price decline is expected and consumers might defer purchases.

Read more on:   
|
|
|
|
|

Read More

Gold jewellery exports up 14.7% in April

India's gold jewellery exports grew for the third month in a row by 14.69 per cent to USD 604.42 million in April, according to Gems and Jewellery ...

Quick Links

 

Market News

Markets extend gains; Metal and IT shares rally

The 30-share Sensex is up 408 points at 27,754 and the 50-share Nifty has gained 117 points at 8,285

Gold hits 4-year low on selling pressure following Fed's QE withdrawal

Miners and sovereign countries started hedging, fall to continue in anticipation of US interest rate hike earlier than expected

Nikkei hits 7-year high as BoJ expands monetary easing

The Nikkei surged 755.56 points or 4.83% to end at 16,413.76, its highest level since November 2007

Maruti Suzuki India, Axis Bank joins Rs 1-lakh-cr market-cap club

Axis Bank hits a record high of Rs 440, while Maruti Suzuki touched a new high of Rs 3,349 in intra-day deals on BSE.

Copper down 0.2% on weak global cues

Metal for delivery in November shed 0.14%

Back to Top