NEW DELHI: The dynamics of gold trade have changed in these times of economic slowdown. India, the largest importer of gold in the world, has
turned exporter of the precious metal especially to its largest importing destination — Dubai.
According to experts, Indian traders are now selling gold, mostly in the form of coins, to Dubai after domestic buyers have begun to shy away from any major purchase as prices of the precious metal are up and even touched an all-time high of Rs 16,040 per 10 gm on February 20.
Though gold is costly and demand low, the price will not come down because it is determined by international factors. The yellow metal witnessed over 15% increase in three months from Rs 13,000 per 10 gm on December 22, 2008, to Rs 15,420 per 10 gm on February 17.
Gold exports have been going on for the last three months and about six tonnes of gold have been shipped abroad during February and March, Bombay Bullion Association director Suresh Hundia said. “We started recording the export figures from February. So the data for January are not available,” he said, adding that about 90% of the shipments are to Dubai. Meanwhile, gold prices continued to reel under pressure in domestic market for the second day in a row.
The price of yellow metal (99.5) plunged by Rs 350 to Rs 14,900 per 10 gm in Delhi. While in Chennai the precious metal melted by another Rs 265 to close at Rs 14,770 per 10 gm, it traded Rs 185 lower at Rs 15,040 per 10 gm in Kolkata.
Source : The Economic Times