• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 2 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 1 hour The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 16 mins Never Bring A Rapier To A Gun Fight
  • 18 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 16 hours Cost of oil
  • 4 mins USAvChina.com
  • 6 hours Democrats and Gun Views
  • 3 hours Aramco Production
  • 5 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 20 hours Iran says tanker oil sold at sea, buyer sets destination
  • 11 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 7 hours Iran in the world market
  • 1 day Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Here Are The Final Numbers On A Terrible Year For Gold In India

The final 2016 stats are in from the world’s top gold-consuming nation, India. Showing that the past year was one of the bleakest on record for this critical bullion market.

Local press quoted familiar persons as saying that India closed out 2016 with a very weak December gold market. During that month, shipments into the country reportedly dropped by 46 percent — totaling just 56.9 tonnes, as compared to the 106 tonnes Indian buyers brought in during December 2015.

That brought calculated imports for the past year to a grand total of 570.8 tonnes. Marking a 44 percent decline from import levels seen for 2015.

There were a variety of reasons for the big fall in imports this past year. Including a six-week jewellers strike early in the year that paralyzed gold sales.

More recently, gold demand has been dented by the Indian government’s campaign to reduce cash circulating in the country. A move that was finalized in late November, and likely was an important driver of lower demand during December.

Sources in India said that national demonetization is likely to be substantial drag on gold demand for the foreseeable future. With one Mumbai-based commodities specialist noting, “The physical demand aspects will be completely bad for 2017. For the first time Indians will be trying to buy gold cashless. That’s a big challenge.”

Related: Oil Price Rebound May Come Too Late For UK Oil Sector

In fact, insiders see India’s gold imports hitting even lower levels this year. With Rajesh Khosla, managing director of India’s biggest bullion refiner MMTC-PAMP, telling the press that he sees imports at 400 to 500 tonnes yearly going forward.

That would be a substantial drop even from this year’s already-low levels. Which begs the question: how would a prolonged reduction in Indian demand affect the gold price?

As I’ve noted in the past, Indian buying doesn’t generally have an immediate effect on global exchange prices. But if a drop in demand on the scale forecast above does appear, it would certainly represent a long-term weight on the market.

This is going to be a critical year for India and gold. Watch for ongoing figures on imports into this key market, to see if shipments are tapering off the way industry experts predict.

Here’s to getting physical.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play