A mix of imported and recycled gold to meet India's festive gold demand, says GJF
With the clarification on import norms, gold imports into the country have resumed
MUMBAI (Scrap Monster): With the clarification on import norms, gold imports into the country have resumed. The imported gold would not be adequate to meet the spiraling gold demand during the forthcoming months. Industry specialists bank on recycled gold to fill the shortage. According to the trade body-All India Gem & Jewellery Federation (GJF), a mix of imported and recycled gold is likely to meet the excessive gold demand anticipated during the festive and wedding season.
As per GJF estimates, the gold demand is expected to rise to 120 tonnes during the season. The imported gold may fall well short of this. Recycled gold is poised to play a dominant role in bridging the supply demand gap.
A recent report by Indian rating agency ICRA says that recycled gold will constitute an increased portion of requirements going forward owing to its unregulated nature and also on account of the high quantum of gold inventory at the hands of the Indian public.
The jewellers are currently seen focusing on sourcing the tonnes of scrap gold lying idle in Indian households. Trade reports indicate that retail jewellers are picking up cast-off gold jewellery at unprecedented discounts. The amount of gold landing in jewellery outlet counters has tripled when compared with average volumes. According to GJF, India’s recycled gold supply is likely to cross 300 tons in 2013.