India ‘to resume gold imports’

India is expected to resume gold imports this month, according to an expert.

The president of the Bombay Bullion Association claimed that new purchases from the country will occur when banks have cleared unsold stocks.

Suresh Hundia explained that a dip in local prices is likely to prompt Indian banks to sell around four to five metric tonnes of gold "immediately".

He suggested that if prices continue to slow monthly imports could increase to 50 tonnes, around double the level seen in April 2008.

Speaking in New Delhi, he stated that lower gold prices could also prompt consumers to purchase more gold jewellery, particularly during the busy Hindu wedding season, further boosting imports.

India imports the majority of the 700 to 800 tonnes of gold it consumes each year.

Mangesh Gavankar of Emirates Gold recently told Emirates Business that purchasing gold is an ideal choice of investment during the current global economic crisis.
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