Gold Imports by India Seen Topping 100 Tons for a Second Month
By Prabhudatta Mishra
Wednesday, May 8, 2013
NEW DELHI -- Gold imports by India, the world's largest consumer, are set to exceed 100 metric tons for a second month in May as jewelers rush to beat central bank curbs on overseas bullion purchases by banks, a refiner said.
The biggest slump in gold prices in more than three decades on April 15 spurred banks, traders, and jewelers to import more than 100 tons last month, said Rajesh Khosla, managing director of MMTC-PAMP India Pvt. Purchases this month will match April's imports, he said. MMTC-PAMP's refinery in northern Indian state of Haryana can process 100 tons of gold, 600 tons of silver, and make 2.5 million pieces of coins a year, he said.
The Reserve Bank of India, or RBI, will issue guidelines by the end of this month to restrict banks from importing gold on a consignment basis as it seeks to reduce domestic demand and curb a record current-account deficit, the central bank said on May 3. Banks will be allowed to buy on a consignment basis to meet only genuine needs of exporters of jewelry. ...