KOLKATA: World Gold Council chief executive officer Aram Shishmanian said on Wednesday that a new World Gold Council research shows that 82% of Asians believe that the price of gold will increase or will be stable in the next five years.
He said: "It is well known that there is a deep belief in gold and its long-term prospects in India and China. Since the sudden drop in the gold price during mid-April, which was driven by the US investment markets, this belief has been reinforced. Not surprisingly, demand has surged as consumers have seen an investment opportunity to buy significant amounts of gold."
World Gold Council has come out with market updates on Thursday shows that premiums pushed to exceptional levels Premiums paid for gold in Asian markets, over and above the spot price, rose almost immediately following the price fall. The Shanghai Gold Exchange saw premiums reach US$40/oz.
The report adds that gold auctions run by the State Bank of Vietnam were fully subscribed with premiums at US$150/oz. In Mumbai premiums were as high as US$26/oz, before settling to around US$10/oz in the month following the price drop.
India, which represents 28% of global consumer demand, may see an increase of up to 150% year-on-year in Q2 2013. This suggests that up to 400 tonnes of gold may be imported into India during Q2 2013, almost half of the total imports in the whole of 2012.
(Source: economictimes.indiatimes.com)
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