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DIWALI - India's Festival
of Lights -
Spotlight on Gold
On October 30, India is celebrating Diwali, also called
the Festival of Lights, which marks the beginning of the new year
according to the Hindu calendar.
Gold is an important part of the festival ... the more gold you
buy and give, the more luck you'll enjoy in the new year !
Demand in India and Dubai in the year through end-September has
been strong. Indian demand of 535 tonnes was up 44% over
the same period last year and had already overtaken 1996's full-year
total of 508 tonnes. Imports into Dubai were 474 tonnes,
up 86% vs the 255 tonnes through September last year.
While retail demand has been slow in the first two weeks of October,
latest reports from the trade indicate that offtake in India as
well as Dubai is now brisk and traders expect a good Diwali business.
Just before Diwali, the Indian government issued an amendment to
the latest liberalisation move on gold (see Gold News Flash dated October 20th). The
import of gold through licensed agencies will now be allowed immediately,
i.e. as of October 28th, 1997 as opposed to the date set earlier
of January 1st, 1998.
The Council welcomes this move. The reduction in the Indian premium
vs the international gold price will be accelerated. As a result,
the restraint on buying by consumers and trade pending the introduction
of the new measures next year has been removed, allowing unimpeded
offtake growth.
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