Gold Imports by India Reach Record
Source: Bloomberg, Madelene Pearson (2/17/11)
"Expectations of continued rally drive surge in jewelry demand."
Purchases totaled 918 metric tons, according to provisional data released by the producer-funded group today. That exceeds the projection of about 800 tons made last month by Ajay Mitra, the group's managing director for India and the Middle East.
Bullion advanced 30% last year, reaching a record $1,431.25 an ounce on Dec. 7, as investors bought the metal as a protector of wealth. Jewelry demand in India jumped 69% in the year to the highest ever, helping drive global demand to a 10-year peak, according to the council.
"India was the strongest growth market in 2010," said the report. "The rising price of gold, particularly in the latter half of the year, created a ‘virtuous circle' of higher price expectations among Indian consumers, which fuelled purchases, thereby further driving up local prices."
Fourth-quarter imports rose to 265 tons from 204 tons a year earlier, the group said. Jewelry demand gained 47% to 210.5 tons, while total demand in the period climbed 37% to 284.9 tons.
Consumer demand for bullion in India rallied 66% in 2010 to 963.1 tons by volume from a year earlier and more than doubled in value to $38.2 billion, the council said.