Gold
imports by India (INMOGOLD) are poised to decline for the first time in three
years as rising prices deter jewelry buyers and
investors, potentially allowing China to overtake the country as the world’s
largest consumer.
Purchases
may drop 7 percent to 900 metric tons this year,
according to the median estimate in a News survey of eight analysts, brokers
and jewelers including Rajesh Exports Ltd, the
biggest gold-jewelry exporter. India bought a record
969 tons in 2011, according to the World Gold Council.
Bullion
is climbing for the 12th year as investors seek a store of wealth amid
volatility in stock markets, depreciating currencies and the threat of
inflation. China’s consumption may surpass India this year after surging 20 percent to 769.8 tons in 2011, the council says. Use in
India fell 7 percent to 933.4 tons last year as the
currency slumped to a record low, cooling purchases for festivals and
marriages.
Imports
plunged 44 percent in the fourth quarter to 157 tons
as jewelry demand slumped 44 percent
to 103 tons and investment demand declined 38 percent
to 70 tons, the council said on Feb. 16. Bullion futures in India rallied 32 percent last year, exceeding the 10 percent
advance in global prices.