shortage in India before festive season?
Bullion markets shine bright during the festive season as Indians throng jewellery shops...
...and invest in gold and silver around Dhanteras and Diwali but this time it might be different
Gold-supplying banks have reportedly cut back shipments to India and instead favoured China, Turkey, and other markets for better premiums
This might create scarcity in India, the world's second-biggest market for gold, forcing Indian buyers to pay hefty premiums for yellow metal supplies
Thus, Indian customers might end up paying more for gold jewellery and other gold products this Diwali
India's gold imports in September fell 30% from a year ago to 68 tonnes, while Turkish gold imports soared 543%. China's net gold imports via Hong Kong jumped nearly 40%
Vaults now hold less than 10% of the gold they did a year ago, as per sources
“Ideally, a few tonnes of gold should be there in vaults during this time of the year. But now we only have a few kilos,” said one Mumbai-based vault official
In India, premiums over the international gold price benchmark have slid to $1-$2 an ounce allowing some to even offer gold at a discount
On the other hand, China is offering premiums worth $20-45 and Turkey is giving $80 on gold
All that glitters may not be gold this Dhanteras and Diwali as consumers could ultimately end up bearing the brunt of this dip in gold supply
Produced by: Bhoomika Aggarwal
Designed by: Mohsin Shaikh
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