Removal of 80:20 not to change India's gold demand: WGC

Maintains India's gold demand at 850-950 tonnes during calendar year 2014, slightly lower than last year

The removal of the 80:20 gold import scheme will have no impact on India’s overall gold demand, said Somasundaram PR, managing director (India), World Gold Council (WCG).

The apex gold mining body said India’s gold demand this year would stand at 850-950 tonnes, slightly lower than last year. The sharp rises in import in recent months weren’t triggered by changes in demand; these likely resulted from expectations of additional curbs, the WCG said.

It added discussions on gold in India must move beyond curbs and focus on how the sector could contribute significantly to the country’s growth in the next five years.

“India should support this vision by creating a favourable ecosystem that deals with gold as a fungible asset category, reflecting its cultural and economic significance. It is imperative that we find ways of mobilising and monetising the household savings imbedded in gold stocks through the formal financial sector for the benefit of the economy. It’s time to re-engage all stakeholders to develop a coherent long-term policy on gold, which is aligned with the nation’s growth objectives,” Somasundaram PR said.