Gold imports by India, the second-biggest consumer, are said to have climbed 10 percent in November to the highest this year, according to a person familiar with provisional Finance Ministry data. Demand increased as jewelers built up stockpiles for the marriage season, a trade group said.
Overseas purchases rose to 111 metric tons from 101 tons a year earlier, the person said, asking not to be identified as the data aren’t public. For the 11 months through November, shipments slumped 43 percent to 513.9 tons from a year earlier, according to provisional ministry data compiled by Bloomberg. Finance Ministry spokesman D. S. Malik declined to comment on the data.
Consumption is on track to drop to the lowest in seven years in 2016 because of higher prices, an excise tax on jewelry and the government’s push to bring more transparency to the financial system where gold is used as a home for undeclared income. Prime Minister Narendra Modi dealt demand another blow when he scrapped notes of higher denominations, reducing cash supply. Full Story