MUMBAI: All these months, gold prices have been skyrocketing. But as prices of the precious metal went up and up, there was little cheer among gold traders and dealers in India.
Reason: the rising gold prices have badly hit import and consumption of the yellow metal in India.
According to latest figures, gold consumption in India has fallen by around 10% in the first quarter of 2008 while the commodity price increased by 40%. And the reduction in gold import was 10% in the quarter.
During the period of January March, the prices of gold has increased by almost 40% from around Rs 9,000 per 10 grams in 2007 to around Rs 12,500 in same period in 2008.
The gold import in Ahmedabad for whole state was recorded 10% less to 27.72 tonnes during first quarter of 2008 as compared to 30.68 tonnes in the corresponding period of previous year.
However, the gold import during the period in 2006 was higher by 79% to 49.5 tonnes, when the precious metal was costing around Rs 8,000 per 10 grams.