MUMBAI -- Gold imports in India, the world's largest consumer, continued their fall in January, plunging to 1-2 metric tons compared with 18 tons a year ago, a senior Bombay Bullion Association official said Monday. Imports of the metal had plummeted in December too, to 3 tons versus 16 tons in December 2007.
"Sales have been poor as prices continue to rise to record levels," said Suresh Hundia, president of the association.
In the Mumbai market, the largest bullion market in the country and a benchmark for prices in other local markets, standard gold rose to an all-time high of INR14,230 per 10 grams Saturday.
Last January, standard gold was quoted around INR11,600 per 10 grams.
Sales have been falling despite the November-February period being the peak wedding season, when Indians traditionally purchase a lot of gold.
Most marriages are held in this period -- except between mid-December and mid-January, which is considered an inauspicious stretch.
"The record prices have boosted the sale of scrap and old jewelry in the last few days. In the Mumbai market, around 50 kilograms of old jewelry and scrap gold are being sold by people on a daily basis," said Mr. Hundia.
Also, there were no imports of silver in the country during the month as demand for the precious metal remained subdued due to high prices, he added
Source : The Wall Street Journal