Gold Imports May Rise by 15% to 805 Tons.

Gold import is likely to rise by 15 per cent this year to around 805 tonnes, as compared to last year due to growing demand for gems and jewellery, an industry expert said on Thursday.

"The demand for jewellery is growing and we expect the imports to grow by 10-15 per cent this year. In 2010, the total gold imports stood at 700 tonne," All India Gems and Jewellery Trade Federation chairman Vinod Hayagriv told reporters on the sidelines of leadership summit for the jewellery industry.

On prices of gold and silver, he said, at the moment it is overheated and there will be a correction in 2012.

"I think presently the prices of the precious metals are overheated and there will definitely be a correction. However, this correction will not be immediate and will be somewhere around 2012," he said.

In the the international market the gold prices is likely to be drop to about $1,200-1,300 an ounce (28.34 grams) from the current $1,374.10 an ounce, he said.

In India, the gold prices might come down to Rs 18,500-19,000 per 10 grams level from the current Rs 20,500 per 10 grams level.

On silver prices, he said, it looks very promising and is likely to climb up further.

"Silver is very hot at the present and may go up to Rs 50,000-60,000 per kg in next six months from its current Rs 45,300 per kg level," he said.

On diamond prices, he said, the prices will definitely go up as there is shortage of rough diamonds due to decline in mining.

Source : rediff.com