Gold Imports by India Seen Shrinking as State Curbs Boost Costs – Bloomberg 07-16-13

Salient to Investors:

The median estimates of 10 importers, jewelers, analysts and trade groups expects gold imports to drop 22 percent in half2 2013.

Goldman Sachs predicts gold will reach $1,050 by end of 2014, and Credit Suisse predicts $1,150 in a year.

Rajesh Mehta at Rajesh Exports said demand will be subdued for the next 3 to 6 months.

Gnanasekar Thiagarajan at Commtrendz Risk Mgmt Services said the festival season will see reemergence of demand and at the same time expect a bumper harvest – genuine physical demand won’t moderate due to Reserve Bank of India measures.

Abundant rains have brightened prospects for a bumper harvest and increases the incomes of farmers, who invest in gold mainly as savings.

Praveen Gupta at Shree Ganesh Jewellery House (I) said people will always buy.

Read the full article at  http://www.bloomberg.com/news/2013-07-16/gold-imports-by-india-seen-shrinking-as-state-curbs-boost-costs.html

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