RESEARCH AND ANALYSIS
Something that is not getting much coverage is the poor monsoon rainfall in India this year. This matters because poor agrarian Indian farmers are purported to buy over 60% of Indian gold. A contact of mine has provided the following update:
âFinally, some good rainfall in India, but it could be too little too late. Rains need to be above normal/normal from now until the end of July so that crops will come in okay. India has missed early crop growing season, and if July does not come in okay, then crop yields will be very poor this year. If we have a very poor crop season we will see farmers selling gold to finance next yearâs crop. If we get good monsoon rains for rest of July, then Indian gold demand should be okay this fall when harvest begins. Some of the rainfall decline to date can be explained by 10+ day delay in onset of the monsoon. Monsoon is only now covering most all the country.â
