Reuters Africa, in its October 1, 2012 article, reports that India unlocks treasure trove of gold as farmers sell.
Extract :
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The surge
in recycling also comes as India looks set to be overtaken by China as the world's biggest consumer of
gold, after a hike in
import duties in March and a rapidly
weakening rupee pushed local gold prices to
record highs. The potential for recycling is huge with
India's 1.2 billion people estimated
to have stored up about 20,000 tonnes of gold in
the form of jewellery,
coins and bars, according to an estimate
from industry body the
World Gold Council – about three times the
holdings of the U.S. Federal Reserve.
"We
have no other option but to sell
our gold in these tough times,"
said Karanure, speaking from her village in Chikkodi in the southwest Indian state of
Karnataka. She could get
nearly 150,000 Indian rupees ($2,800) from the sale
of her bangles and necklaces, a vital source of income
after drought this year has slashed rural incomes. The Bombay Bullion Association (BBA) estimates
the supply of
recycled gold in India
will hit 300 tonnes in
2012, up about five-fold from
2011 and the highest in more than
a decade.
"There won't be new demand from farmers
and scrap will flow in
the market," said Prithviraj Kothari, president of the BBA, made up of 400 bullion
dealers and traders. "In coming years, 50 percent of the requirements
will be met through scrap
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