MUMBAI (Scrap Register): The world's biggest bullion consumer India's recycled gold supply is likely to reach 300 tons in 2013 as compared to an average of 200 tonnes per annum, according to All India Gems and Jewellery Trade Federation (GJF).
"Jewellers will need more gold to manufacture jewellery, as imports have been heavily restricted. If I sell today and (am) not in a position to replenish my stocks, then I'll have a problem and then I'll have to source gold from somewhere else," said Bachhraj Bamalwa, director of the All India Gems and Jewellery Trade Federation, in a interview with Reuters.
With the Rupee crashing to new all-time lows on the currency market, however, gold prices are near record highs for Indian households.
Indian government has doubled taxes on bullion imports this year to shrink a ballooning trade deficit and end a slide in the rupee. Gold is the country’s second largest import after oil.