The gold demand dropped drastically during wedding season in India, falling by more than 20% over the previous year. The demand for gold remained subdued amidst high prices of the metal in domestic market.
While speaking at the occasion of the International Customs Day on Jan. 26, Indian Finance Minister, Mr. P. Chidambaram admitted that in spite of the stringent import restrictions, gold smuggling reached up to 3,000 kg in certain months.
The Indian finance ministry announced yesterday that they will be reconsidering the import restrictions imposed on gold by March end. The Finance Minister of India, Mr. P. Chidambaram on Monday informed that the Govt. will be taking actions regarding the current gold import restrictions soon.
“There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults? As has been remarked here before, forecasting the price is for mugs and bugs.
Physical buying in India is also set to remain steady as citizens look to buy gold ahead of the wedding season. Exports of gold jewellery from the country fell by 30% to $443.19 million, in December from the previous year.
For the first time in history, the Chinese authorities have granted gold import licenses to two foreign banks operating in the country. ANZ and HSBC are the two nominated banks to receive gold import permits. The move is aimed at boosting gold supply into the country.
Caught by a number of factors, the global minting industry is experiencing coin shortage crisis together with the possible threat of rationing. The Central Bank of India in 2013 had imposed various restrictions and norms over the gold import and trading which had considerably hindered gold purchases in the country.
Coin demand remains strong, the U.S. Mint yesterday reported coin sales of 63,000 ounces, 9,000 more than sold in December 2013. Similar demand has been seen here at the Royal Mint where ‘exceptional demand’ has run stocks of the 2014 Sovereign gold coins dry.
The premium charged by wholesale dealers for American Eagle coins from the U.S. Mint may rise from 14%. The mint has said that weekly allocations will be reduced despite very strong demand so far this month.
The Air Intelligence Unit (AIU) of Indian Customs and the Directorate of Revenue Intelligence (DRI) has sought help from retired and experienced Customs officers to curb increasing incidents of gold smuggling acts.