India's Gold Imports Double
Economics 101: Increased demand equals increased prices!


Gold import doubles
The import of gold has increased by over two times to stand at 14,000 kg in 2009/10 from 6,500 kg in the year 2008/09.

According to Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NGSDA), total gold worth Rs. 40 billion has been imported in 2009/10 while it was only Rs. 15 billion in 2008/9.

He also said that the huge import of gold has triggered massive capital flight which has forced the central bank to put cap on gold imports.

As per the new directives of the Nepal Rastra Bank (NRB), it has allowed banks to imports 10 kg of gold per day to reach the demand in the domestic market while during the wedding season it has permitted 20 kg per day.

He also informed that the investors were attracted to invest in gold as it was seen as a good investment and secure.

Shakya said that the annual demand of the gold is only 6,000 kg which is around Rs. 20 billion for its import and the average demand of the gold is around 20 kg per day in the domestic market.

Commercial banks like Standard Chartered, NMB, Machhapuchhre, NIC Bank, Prime Bank, Nabil Bank, and Bank of Kathmandu are importing gold in the market. nepalnews.com