Indian gold buying steps up prior to wedding season
By Duncan Richardson, News Editor
24 Sep 2015
Gold buying in India the world’s second largest gold consumer is estimated to jump in the final quarter of 2015. It appears lower prices are generating a resurgence in buying activity throughout the sub-continent. Traditionally physical buying peaks in September and November during the wedding season.
China’s shock devaluation of the Yuan and stock market plunge has only increased golds appeal throughout the country.
According to figures released by the Swiss Federal Customs Administration Department exports of physical gold from Switzerland to India rose from 66.2 tonnes in July to 66.9 tonnes in August. Whilst exports to China surged 49% and exports to Hong Kong more than doubled.
Gold buying is a way of life in India and is seen as the only way to protect wealth over the long term. Surprisingly 60% of all gold bought in India is purchased in rural areas where the population rely heavily on farming.
According to the World Gold Council India imported 891.5 metric tonnes of gold in 2014.
Gold is currently trading at £743.02 per ounce, silver £9.70 per ounce, platinum £616.57 per ounce and palladium £424.62 per ounce.