2010 Indian gold imports are set to equal those of 2009 says Commerzbank.
It’s as if 30-40% higher prices don’t even matter.
Analysts cite reports from the Bombay Bullion Association saying that imports into the key consuming nation of India could top 40 tons in October and that imports for the full year could reach last year’s level of 340.
“Jewelry demand is evidently accustomed to the higher price level,” Commerzbank says. “Slight drops in prices are being used as buying opportunities even at the current high level.” This is reflected in a strong demand for gold in India in the run-up to the early-November Diwali festival, the bank says.