Indian Gold imports set to rise

News last week that the Reserve Bank of India is set to allow 5 domestic private banks to import is likely to see an increase in gold imports.  For the last 3 years only 6 largely state run banks and 3 state run trading agencies could do so and last year the 10% tax hike and ‘80/20’ import/export rules decimated official imports and increased smuggling and premiums.  General elections starting in April are also looking likely to see the main opposition party, who are against the import restrictions, take power.  It should be an interesting ‘competition’ with China, the new #1 gold consumer, who are reportedly already up 29% on gold imports this year over the all time record year in 2013.  So that’s a little on demand, how about supply….?