Falling prices boost gold demand in India
Gold prices are in a free fall with the global demand for the yellow metal slumping to its lowest in nearly five years. But the Indian love affair with gold continues. Here are some points that investors can consider while taking a call on the yellow metal:
Slide to boost gold buys
The continuing slide in prices will result in higher gold consumption, say experts. "The fall in gold prices has brought consumers back into the market. This (fall) is turning out to be a good buying opportunity," says Keyur Shah, CEO (precious metals business), Muthoot Pappachan Group. C P Krishnan, whole-time director, Geojit Comtrade, says, "Lower gold prices have attracted retail buyers. The demand during Dhanteras was also good. The festive season demand would also be better." While gold buying is traditionally subdued in Q3, the demand is usually high during the festival season (Q4 - October-December).
专家说，金价持续下滑会造成更高的黃金消费。“金价的下降把消费者带回了市场。“这个（下降）变成了购买的好机会，”Muthoot Pappachan 集团总裁（贵重金属行业）Keyur Shah说。从Geojit Comtrade公司创建以来一直担任董事的C P Krishnan说，“较低的黄金价格吸引来零售买家。排灯节期间的需求也很好。节假季节需求也会更好。” 传统上第三季度黄金购买低迷，但节假季节（第4季度- 10～12月）需求通常高涨。
Worst may not be over
The sharp slump in prices may have led buyers to accumulate more gold. But the worst is still not over for the yellow metal, says advisers. "The outlook is not very positive and gold is not an attractive option in the short to medium term," say financial planners. According to Krishnan, "Gold is still looking bearish because of the strong dollar. There is no support for gold and there is scope for further fall in prices."
Beware of regulatory action
The sharp increase in gold consumption in Q3 is largely due to the relaxation of gold import rules by the Reserve Bank of India (RBI), say experts. The RBI had introduced the 80:20 scheme in August last year, allowing nominated agencies to import gold on the condition that 20% of these imports should be exported. "The demand was much lower last year because of RBI restrictions," Shah says. The clampdown on gold was done to halt a free fall in the rupee, which slumped due to the high CAD (current account deficit) that arose due to surging imports of the yellow metal. The central bank relaxed gold import norms only in May this year. Any unusual increase in imports is likely to attract regulatory action. "The government is also wary about the increase in gold imports. Recycling gold is the only solution to meet demand in the long run," say experts.
专家们说，第3季度黄金消费急剧上升，主要是由于印度央行放松了黄金进口规定。去年8月, 央行实施了80：20计划，允许指定的代理商进口黄金，条件是这些进口中的20％要出口。Shah说，“由于印度央行的限制，去年的需求低多了。” 对黄金的压制是为了阻止卢比的自由下落而做出的。经常帐目赤字高启导至卢比骤跌，而经常帐目赤字的上升是因黄金进口猛升而引起的。央行今年5月才放宽黄金进口规定。任何不正常的进口上升都极有可能引来监管行动。“政服对黃金进口增加也很留心。从长远看，回收黃金是迎合需求的唯一解决办法。” 专家们说。
Take a long-term view
Buyers should take a long-term view - at least three years - on gold, say advisers. "Gold is a time-tested asset class. The price volatility is temporary and so investors should take a long-term view on gold," Shah says.
提供建议的人说，对于黄金，买家应从长远考虑 - 至少3年。“黄金是个经过时间考验的资产种类。价格不稳定是暂时的，因此对黄金投资者应该从长计议，” Shah说道。
Abjinder Pal Singh
Syed Rashid Mustafa
Are you not an Indian?....
Abjinder Pal Singh
I am 100% Indian what I meant was we Indians are crazy to posses lots and lots of Gold...
Being an Indian ( assuming to be so from your name) it is surprising that you are not aware of the mentality of most of our bachelors demand dowry in various forms and gold happens to be an important factor in their agenda.If you happen to be a father of girl children, then you will know the difficulty of getting them married. Given the attitude of our guys, most families go for gold . And also,gold is a safe and solid investment source, encashable always, during times of need for any eventualities.
S. Desai• 5262 • • Mumbai
I was told it will come down to Rs.20,000 per 10 gm.
harisingh singh• 14564 • • S. Desai • New Delhi
u may be true sir
at present is 24,200/-in delhi
Bipin Mehra• 6236 • • Noida
It will be down further as market is going upward trend
I hope the downtrend will continue for some more time.
harisingh singh• 14564 • • suresh • New Delhi •
for two three month
sankaranarayanan Narayanan• 16738 • • chennai •
Whether the prices fall or hits the roof,it does not bother our women . They want to possess more.
harisingh singh• 14564 • • sankaranarayanan Narayanan • New Delhi •
that is indian culture for gold
Is it right time to buy gold for personnel need? Can we wait some more time?
sankaranarayanan Narayanan• 16738 • • shivaji.1983 Shivaji • chennai •
Gold prices and Stock markets are always volatile and one cannot reasonably assume that the prices of gold will come down further.This is the right time to buy gold.
Warmmelody• 3213 • • Africa •
Falling prices will make the family which has female child to buy gold and keep it for their marriage. As Many Indian Marriages or not made in Heaven but with Dowry/Gold