Gold imports dip 8% in 3rd quarter

MUMBAI, NOV 19: After a deluge of gold imports in the first quarter of 1998, India's demand for gold fell once again in the third quarter en...

MUMBAI, NOV 19: After a deluge of gold imports in the first quarter of 1998, India’s demand for gold fell once again in the third quarter ended October 1998 to 171.8 tonnes, eight per cent lower than the record level of the same period of last year (Q397). Year-to-date demand for gold, however, was 19 per cent higher than in the first three quarter of 1997.

According to Gold Demand Trend figures released by Geneva-based World Gold Council, gold demand was over 240 tonnes in the Q198, whereafter demand for gold had declined in the second quarter which witnessed a demand of around 200 tonnes. In the third quarter, it is for the second consecutive quarter that the demand for gold declined.

However, India’s imports of gold in all the three quarters of 1998 at 479.4 tonnes, is 26.5 per cent higher than 378.8 tonnes imported in the previous year’s three quarters.

Story continues below this ad

"The scenario today has changed," said WGC’s financial institutions manager, Derrick Machado. "Liberalisation of imports and the consequent improvedmethod of measuring demand introduced int he last quarter makes direct comparisons between 1997 and 1998 less appropriate. While in the past India’s import data was based on estimates of imports from Dubai, it is now collected directly from gold importing banks and official bodies."

The good third quarter statistics were the result of a steady performance by jewellery and a surge in investment, especially in USA where coin sales rose to near record levels, WGC note said.

International gold demand in the third quarter recovered from the poor start to the yar, although the economic and currencies crisis in Asia kept the demand below normal levels in several countries. Total demand in countries monitored by Woorld Gold Council was 676 tonnes, just one per cent below the record third quarter of 1997.