MMTC to import 350 tons of gold, 1200 tons of silver

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Friday, July 8, 2011, 16:52 [IST]

When economic and political stability is threatened, people flee to safe haven. Demand for precious metals is increasing day by day. India's largest bullion supplier, state-owned trading company, Minerals and Metals Trading Corporation (MMTC), said to reporters on Thursday that it would import 350 tons of Gold and 1,200 tons of Silver in 2011-12 to meet the rising demand.

India imported 245 tons of gold and 880 tons of silver, last fiscal year, which shows demand is more this year as compared to last year.

India is one of the largest consumers of gold in the world. Recently, demand for gold is being double in India based on the Indian culture, inflationary fears, central bank's requirements, a desire to diversify wealth holdings, increase gold reserves, increased industrial, jewelery demand, etc. India has been importing tons of gold and silver every year.

Ved Prakash, MMTC Marketing Director said, 'We plan to 350 tons of gold and 1,200 tons of silver in the 2011-12 fiscal as the domestic demand for these metals are fast rising'.

MMTC's gold imports over the last quarter were nearly twice the import it made in the corresponding quarter of last year.

Due to the prevailing market volatility, demand for yellow metal is rising as a safe haven, Prakash said.

He further said, that import of gold by MMTC in the current fiscal is expected to rise by more than 40% to meet the demand.

Besides gold, the demand for silver is also rising as it gives better returns, he said.

India is the largest importer of the silver in the world and reports suggest that the bulk of sale is being made in rural areas.

India has also emerged as the third largest industrial user of silver in the world after US and Japan.

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