Gold import bill may hit five-year high in 2017

India’s gold imports in terms of quantity in the first half of 2017 crossed the entire imports of 2016. According to data compiled by GFMS Thomson Reuters, India imported 510 tonnes of gold in 2016, while the imports in the January-June 2017 period were 521 tonnes. In 2016, the imports bill for gold in value terms according to the Ministry of Commerce was $23 billion and till June this year, industry estimates stood at $22.2 billion. Going by industry estimates, gold import are likely to cross 900 tonnes against the average imports of 709 tonnes in the past five years, and the imports bill is expected to cross $40 billion in 2017. If the estimates come true this would be the highest imports in value terms since 2012.  Commodity Trading Tips

Industry sources estimate that lower gold prices, reduced liquidity after demonetisation, lower than feared goods and services tax (GST) rate of 3 per cent, farm loan waivers, good monsoon leading to high rural consumption, possible shift of demand from diamonds to gold and central government employees’ wage hike will all boost gold demand in the coming months. Apart from gold, even silver imports have picked up in the first six months of 2017 to around 3,050 tonnes, compared to 3,546 tonnes in the whole of 2016. Silver imports are more price sensitive. With silver prices falling sharply in the last quarter compared to gold, imports could only go up further, say experts.  Nifty Trading Tips