from Gold Silver Worlds:
This is a quick update on the physical demand frenzy in the East.
According to Mineweb gold imports to India ”jumped by 138% in April to $7.5 billion, massively pushing up the trade deficit. In April 2012, gold and silver imports stood at $3.1 billion.” That has accelerated the worries of the Indian government who has been fighting the deficit (which is the difference between inflows and outflows of foreign currency) caused by surging gold imports for many months now. The deficit touched an historic high of 6.7% of the GDP in the quarter ending December. ”India’s apex bank the Reserve Bank has gone ahead and restricted the import of gold on May 13, even as jewellers were doing brisk business given the huge demand on the auspicious occasion of Akshaya Tritiya.”
Additionally India Times writes that “the sudden surge in demand has prompted the World Gold Council to say India’s imports this year will exceed earlier estimates of 865-965 tonnes, said the council’s managing director, Somasundaram PR.”
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