Gold Demand: Indian Imports Exceed Predictions

Regular readers of The Gold Enthusiast know we closely watch the Indian gold market. That only makes sense, as India has one of the top 2 retail gold markets in the world, so it represents a significant chunk of the world’s gold demand. Most recently, we took a peek at the mindset of buyers and sellers at the famous Zaveri bazaar.

Today we see the first year-end numbers coming out of India for 2017, and they look good. Extremely good, in fact. You may recall the demonetization of the 500 and 1000 rupee notes in late 2017, and the questions of whether the gold market would take a huge hit.

The last read was that there might be a gray market growing, and that retail sales were a bit weak. Today, we learn that gold imports into India were up 67% in 2017 to 855 tonnes, smashing expectations. This is being attributed to jewelers replenishing their stocks, as they better understood gold demand.  

What this Gold Enthusiast suspects is that the gold trade has adjusted to its new environment, and we’ll see similar total consumption overall but distributed through slightly different channels, as buyers get used to using credit and non-cash money sources.  Hopefully, we’ll see a good report on this by the end of January. You can read about the 2017 import figure news release here.

 Related: Iran is Selling Gold Right Now. Learn How this Affects the Market. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

Leave a Comment