India's gold imports down by 59 per cent for 2009

Mumbai: Record prices of gold have resulted in drastic reduction of imports in India, with November imports half the volume as compared to the same period last year. According to Bombay Bullion Association, the country's yellow metal imports are down to 18 tonnes for this month as against 34 tonnes last year.

For the first 10 months of 2009, imports were at 156.9 tonnes, down 59 per cent from 383 tonnes in the same period last year.

Imports have nosedived with the yellow metal hitting record price levels of Rs18,000 per 10 gm in the markets this week.

Such prices have resulted in jewellery customers shying away and jewellers not picking up stocks. 

Scrap sales have also increased in the last few days because of high prices, according to jewellers. Record prices have resulted in people selling their gold holdings, which have improved supplies in the market and lowered demand for imports.