50 per cent: Gold imports in calendar year 2020 are expected to fall 50 per cent to a near 17-year low.
- The reasons for such a steep decline include the Covid-induced lockdown implemented in March and the historically high gold price of over Rs 53,000 per 10 grams.
- In fact, as per the World Gold Council, India's gold demand in 2020 is expected to fall to the lowest level in 26 years. Analyst and experts expect only 350 tonnes of gold import this year.
- This number is close to what the country imported in 2003. Many have moved away from investing in physical gold to Gold ETFs and Sovereign Gold Bonds. SGBs equivalent to 10.8 tonnes of the gold have been issued since the beginning of April.
- Gold ETFs equivalent to 4-5 tonnes of physical gold have been bought since April 1.
- Many sold gold as prices rose sharply or took loans against the yellow metal to meet short-term liquidity needs.
A few links for further reading
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