India floods own market with record quantities of gold
- Published: Dec 26, 2014, 5 AM
Gold inventories in India are reaching record levels after import restrictions were relaxed, according to Mike Fuljenz in the latest issue of The Mike Fuljenz Metals Market Report.
The owner of Universal Coin and Bullion in Beaumont, Texas, Fuljenz reports that the Indian Ministry of Commerce and Industry recorded November imports of 150 metric tons of gold, a 571 percent increase from the same time the year before when full import restrictions were in effect.
A metric ton represents 32,150 troy ounces of gold.
The latest surge in gold buying is the result of the Indian government's easing of the 80/20 import restrictions requiring dealers to export 20 percent of the total quantity imported, according to Fuljenz. The easing of import restrictions coincided with the traditional heavy demand during the festival and wedding season.
Three gold loan companies in the Indian state of Kerala are reported to hold more gold than some of the world's richest central banks. Fuljenz states that India accounts for approximately 30 percent of the global demand for gold.
Gold analysts from several market watchers announced their price projections per troy ounce for gold during the first half of 2015 when they believe the gold market will be weak:
??Commerzbank AG, $1,200
??Thomson Reuters GFMS, $1,175
??Citi Research, $1,220
??TD Securities, $1,225
??Natixis Global Asset Management, $1,140
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