Saturday 2 July 2011
Posted by
Admin Hijrah Dinar
India's gold and silver imports surged 500% from April to May, reaching $8.96 billion according to Mineweb. May's numbers were up 222% compared to 2010.
According to Sudhir Chakraborty, an analyst at Standard Chartered bank, yearly imports of gold and silver in India average around $22 billion. Nearly $9 billion in a single month is unprecedented.Soaring inflation, which official numbers recently pegged at 8.65%, is pushing demand for precious metals to all-time highs.
Indian consumers have a long tradition of using gold -- in the form of jewelry, coins, and bars -- to preserve family wealth.
More from Mineweb:
"Rapid inflation is eroding the earnings
of the common man. One has to understand how the import of gold has
reached $9 billion for a month, while the yearly average is around $22
billion," said Sudhir Chakraborty, bullion analyst at Standard Chartered
bank.
Analysts maintained that India's central
bank, the Reserve Bank of India's decision to grant licenses to seven
more banks to import bullion has helped push up demand.
Category:
Gold Saving / Investment
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