India’s hunger for gold supports gold price

Hindu holidays are approaching, as is the wedding season. The high demand for gold by Indians can also be deduced from the import figures. While in 2020 India demanded around 446 tonnes of gold, in the first three quarters of 2021 it was already 360 tonnes of gold. And for the coming year, the World Gold Council also expects India to be very hungry for gold. This should support the gold price.

The second largest consumer of gold on earth is India. For this, a lot of gold has to be imported. From 2016 to 2020, according to the World Gold Council, 86 percent of the gold came into the country through imports, mining supplied only one percent, and about 13 percent came from recycling. That’s because the Indian government has been trying to curb gold imports since 2012, fearing a negative impact on the country’s trade balance. Various strict import restrictions have been imposed. While import duties were at ten percent for many years, they were raised to 12.5 percent in 2019. Taxes on many other goods that are imported were also pushed up. In early 2021, India again lowered the import duty on gold bullion to 10.75 percent, but the price of gold had risen significantly.

Now, catch-up effects as in India, so also in China, as well as the uncertainty regarding the new Corona virus variant could make more investors turn to gold as a safe haven. A well-supported gold price also boosts the well-positioned gold companies. These include Empress Royalty and Fiore Gold.

Empress Royalty – https://www.youtube.com/watch?v=d-ptx2yvyfU&t=147s – invests in development and production stage projects in gold and silver. Licensing and streaming agreements provide diversification.

Fiore Gold – https://www.youtube.com/watch?v=oi0GmtOrxLM – has the highly prospective Pan Mine in Nevada. Currently a merger with Calibre is planned.

Latest corporate information and press releases from Fiore Gold (- https://www.resource-capital.ch/en/companies/fiore-gold-ltd/ -).

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