Gold Being Sold Aggressively In India As Prices Near Record
June 5, 2012 by Gold Editor
SOURCE: [Bloomberg] - Gold consumers in India, the world’s biggest importer, are “aggressively” selling the metal after prices surged to a record, an industry group said. “In some areas consumers are selling more than jewelers,” Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation, said today in a phone interview. “They are selling aggressively.”
Prices advanced after the rupee plunged to an all-time low against the dollar last week. Global prices for spot gold are down 16 percent from the peak reached in September. Photographer: Kuni Takahashi/Bloomberg Gold in India climbed to a record on June 2 after the rupee fell to an all-time low against the dollar, while global prices are down 16 percent from a peak reached in September. The jump in scrap sales adds to evidence of slowing demand in India that may lose its spot as the world’s largest bullion market in 2012 to China, according to the World Gold Council.
“Physical buying is not there, because prices are very high,” said Ketan Shroff, a director with Pushpak Bullions Pvt. in Mumbai. “Everybody is selling. Even retail investors, who had invested at lower levels, are sellers right now.”
Futures for August-delivery rose 0.6 percent to 30,104 rupees ($540) per 10 grams on the Multi Commodity Exchange of India Ltd. at 3:52 p.m. in Mumbai, near last week’s record 30,156 rupees. Global prices for spot gold traded at $1,619.27 an ounce, down from an all-time high of $1,921.15.
Scrap sales in India may more than double to about 300 metric tons in 2012 from 130 tons a year ago, Prithviraj Kothari, president of the Bombay Bullion Association, said on May 29. Gold demand will be “very poor” in the next two months, he said today.