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Koos Jansen

Koos Jansen

Koos Jansen is a precious metal analyst from the Netherlands. Koos
mainly provides unique insights about Chinese gold market.

Official India PM Import August: Gold Down, Silver Holds

  • Date
  • Author Koos Jansen

India’s official gold import is coming down like a hammer. In August India’s gross gold import was a mere 17 tons, – 72 % m/m, – 65 % y/y. The lowest since February 2009. In the first 8 months of this year total gross import accounted for 708 tons, up 111 tons compared to the same period in 2012, or + 19 % y/y.

India monthly gold import August 2013

The main reason for this slump is India’s import duty on gold that was raised  in January from 4% to 6 %, in June to 8 % and in August to 10 %. Another reason is the 80/20 rule that came in force in August, forcing importers to directly re-export 20 % of their gold import. The results are that official import is decreasing, gold smuggling is increasing, premiums are making al time highs and silver imports are up. If we look at a chart from Nick Laird we can see that on top of the import duty Indians have to pay a premium of 12 % on gold, 22 % in total!

India Gold Premiums

Silver demand in india is extraordinary high this year. India gross silver import in August was 369 tons versus 212 tons in August 2012, an increase of  157 tons, + 74 % y/y.  Compared to July 2013 imports decreased 428 tons from 797 tons, – 54 % m/m. Year to date India gross silver import stands at 4311 tons, up 2440 tons compared to the same period in 2012, or + 130 %.

India monthly silver import augustus 2013

The DGCIS has not disclosed any gold or silver export numbers from August.

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