India Gold - Customer Zone - Reuters

COMMODITIES GOLD GOLD: REBOUNDS WILL RISK SHIVER BATTERED AVERSION ON JAPAN AFTER BY BANISH DEBT SHARPEST U.S. CREDIT DOWNGRADE CORRECTION LOSS DOWNGRADE SINCE DESPITE FEARS? MAY CORRECTION FEARS AUGUST 2011
However, the risk to continued demand, Scotia said, was "If there is a correction, people may just step aside."
Jewellery demand is likely to witness a revival after a slow pace of growth in the quarter to June. Investment demand grew by a
whopping 78 percent to 108.5 tonnes, while jewellery demand slowed by 17 percent to 139.5 tonnes in the second quarter.
"People are buying jewellery as investment, there was a lot of new buyers who were not buying jewellery but buying gold bars
and coins, but just in the south people are buying jewellery, so this year we may see some revival in jewellery demand," he said.
India's gold imports: ( http://link.reuters.com/xaf72s )
Gold seen rising to $1,940 by year end ( http://link.reuters.com/rab72s )
CORRECTION KILLS INTEREST IN SILVER
Kashyap said silver imports had shrunk after spectacular sales in the first-half to June, adding prices were likely to fall by 18.5
percent from current levels to $35 an ounce, driven by a slowdown in industrial demand.
"There is a definite resistance to silver. Once it crossed 50,000 rupees and then went to 60,000 rupees, a lot of people got
stuck with positions, and the correction from 60,000 rupees killed many people's interest, so there is now less interest as it is
considered as a two-way metal," said Kashyap. "Gold has just moved in one direction."
Silver prices have corrected 32 percent after peaking to 73,600 rupees in late April.
"We had a very strong spurt (in imports) in the first half itself. I would suspect 3,500-4,000 tonnes (of imports in 2011) on low
base effect," said Kashyap. India imported about 2,800 tonnes of the white metal last year.
"The fact silver demand is inelastic to price, but here demand itself will not be coming down due to slowdown," he said.
Kashyap feels there is lack of a clear laid out policy in India to boost avenues available to retail gold investors. Conversely,
China has allowed a plethora of retail investment products to boost investments such as in the form of gold deposits, certificates
and gold accumulation plans.
"The banks here in India have already made representations to the regulator but they have not received any response," he said.
POLL-India gold trade sees 2011 imports easing from record
By Siddesh Mayenkar
KOVALAM, India Aug 20(Reuters) -
G old
imports from India, the world's largest consumer of bullion, are likely to ease to 825 tonnes in 2011, down 12 percent
from last year's record of 958 tonnes, a Reuters poll of 12 importing banks, and traders showed.
At a conference in Kovalam in southern state of Kerala, gold market participants gathered to assess the impact of
record high prices on gold imports.
The lowest imports was estimated at 500 tonnes by a private importing bank in Mumbai and the highest was estimated at
1,000 tonnes by the Bombay Bullion Association and Kolkalta-based wholesaler JJ Gold House.
Following are forecasts of industry members on India's gold imports in 2011 in metric tonnes:
Company Business Forecast
Corporation Bank, Mumbai Importer 900
IndusInd Bank, Mumbai Importer 700
Private Bank, Mumbai Importer 500
Parker Agrochem, Ahmedabad Wholesaler 600
Quant Commodities, Mumbai Wholesaler 700-800
MNC Bullion, Chennai Wholesaler 900
Khemka International, New De lhi Wholesaler 700-750
JJ Gold House, Kolkata Wholesaler 1,000
Bharghav Vaidya, Mumbai Trader 950
Surana Corporation, Chennai Wholesaler 950
Bombay Bullion Association Trade body 950-1000
State Trading Corp, New Delh i Importer 700
MEDIAN 825
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