India splurged a file $55.7 billion on gold imports in 2021, shopping for greater than double the earlier yr’s tonnage as a worth drop favoured retail patrons and pent-up demand emerged for weddings that had been delayed when the pandemic first hit.
The beforehand unreported particulars of the world’s second greatest consuming nation’s hovering imports had been disclosed to Reuters by a senior authorities official who requested anonymity as he was not authorised to talk to media.
The 2021 gold import invoice simply doubled the $22 billion spent in 2020, and surpassed the earlier excessive, set in 2011, of $53.9 billion, in response to the official, who tracks broad import tendencies.
In quantity phrases, India imported 1,050 tonnes of gold in 2021, probably the most in a decade, and way over the 430 tonnes imported in 2020, the official stated.
Whereas world bullion costs drew help from the robust demand in India, the outlay on imports would have added to stress on the nation’s ailing rupee.
“Final yr demand was strong as numerous weddings had been postponed to 2021 from 2020 due to the coronavirus outbreak,” stated Harshad Ajmera, a gold wholesaler in Kolkata.
Indian authorities imposed strict lockdowns throughout the first waves of the pandemic in 2020, hitting gold demand throughout the marriage ceremony season and key festivals equivalent to Akshaya Tritiya, when shopping for gold is taken into account auspicious.
Gold is considered a necessary a part of the bride’s dowry in India, and can also be a preferred marriage ceremony present.
Ajmera famous a worth correction had made gold extra inexpensive for retail shoppers in India early final yr
Native gold costs hit a file excessive of 56,191 rupees ($754) per 10 grams in August 2020, however fell again to 43,320 rupees in March 2021, when month-to-month imports spiked to a file 177 tonnes.
In December India imported 86 tonnes of gold, barely greater than final yr’s 84 tonnes, the federal government official stated.
Gold imports may reasonable in January as rising coronavirus instances have prompting native authorities to impose restrictions, stated a Mumbai-based bullion seller.
“Jewellers are afraid of lockdown. They’ve scaled down purchases,” the seller stated.
This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint