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India's Gold Import Bill - 5 Year Trend
Jan 18, 2016

Today's chart of the day shows India's gold import bill over the last five years. From the high levels of US$ 53,921 million in 2011, India's gold import bill in 2015 stood 35% lower at US$ 34,982 million. Does this mean India's gold demand has dropped over the years? The answer is no. The decline in India's gold import bill is broadly in tandem with the declining trend in gold prices over the last five years. International gold prices are down over 40% from their all-time high level of US$ 1921.5 on 6 September 2011.
As per Business Standard, with an estimated 105 tonnes of gold import in December 2015, the total gross import in the year 2015 crossed 900 tonnes. That's 25% higher than 2014. However, the rise in the 2015 gold import bill over 2014 has been just about 12%. This is because of low gold prices in the international market. Average international gold price dropped by 8% in 2015. However, from the annual high, international gold prices declined nearly 20%. Moreover, more imports took place at lower prices, resulting in the relatively lower increase in the import bill.

As you know, India is a very big consumer of the yellow metal. Over the years, we have managed to accumulate 20,000 tonnes of gold! The government has been trying to find ways to put so much gold to some productive use. The launching of the sovereign gold bonds was a step in that direction. Will this scheme be successful? Here is an interesting perspective on the sovereign gold bonds scheme by Vivek Kaul, author of Vivek Kaul's Diary.

Data Business Standard; GFMS; DGCIS

This Chart Of The Day was published in The 5 Minute WrapUp - The Timeless Formula to Successful Investing

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