Monday, March 14, 2011

Indian Imports Surge, Caused By Can't-Miss Fever

The Indian city of Ahmedabad is where a lot of imported gold comes in. Thanks to gold fever settling into India, records show imports in the city rising to a six-year high. Six years ago, gold was only a little over $400/oz.
"Compared to 2009-10, the gold import at Ahmedabad has increased by more than 15% in [the last 11 months of] 2010-11," says Samir Mankad, CEO of GSEC Ltd at the city's airport, speaking to the DNA newswire....

"Two years back, due to global recession and slowdown in India, many could not invest in gold," says Gold Bullion trader and analyst Girish Chokshi, also quoted by DNA.

"Now, they don't want to miss it again. The import has gone up because the demand is aggressive."
Another seller concurred, and added that demand is hottest in the rural areas of the country.

India's farmers are benefitting from agricultural-goods inflation, and they're quite prepared to turn hay into gold while they can. Since what they sell benefits from inflation, they aren't deterred by higher prices as much as someone that's chained to cost-of-living increases.

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