India's Gold Imports Surpass $1B Last Month, Record High

Did you know?

This summer, the Indian government did something big – it slashed the gold import duty by a whopping 9 percentage points.

This move was no small feat; it ignited a surge in the passion of Indian people to buy gold, as if they had taken a stimulant.

In August, India's gold import value skyrocketed to a staggering $10.06 billion, a historical record that makes one's jaw drop.

Experts from Metals Focus, a consulting firm, estimated that this equates to 131 tons of gold, making it the sixth-highest import volume in history.

The credit for this goes in no small part to the reduction in tariffs.

Philip Newman, the Managing Director of Metals Focus, said, "The effect of this tariff cut is unprecedented; consumers are flocking to it."

Take a look at that MK Jewelry store in Mumbai; it's in a prime location and doing a booming business.

The store manager, Ram Raimalani, couldn't stop smiling, saying that the store's business is booming, and he expects sales in the second half of this year to jump by 40%.

All this is thanks to the government's good policies, which have put money in people's pockets and eased their minds, making them feel free to buy gold.

It's strange to say, but as gold prices soar, we onlookers might be sweating, but Indians seem to be unfazed.

Why?

Because they see gold as money, and buying gold is like saving money.

Manager Raimalani said, "As gold prices rise, Indians are even happier because the gold in their hands is worth more, which is like making a fortune from an investment."

However, as gold prices continue to rise, how long can the enthusiasm of Indians last?

Harshal Barot, a senior research consultant at Metals Focus, warned us that the benefits of the tariff cut are nearing their end, and with gold prices still rising, whether consumers can continue to spend as freely as before is a question mark.

But Manager Raimalani is confident, saying that even if gold prices fall, the demand for jewelry during the wedding season in India will remain strong.

The love Indians have for gold is etched in their bones, and nothing can stop it.

Looking at the Reserve Bank of India, it is also a "big player" in the gold market.

In the first seven months of this year, they bought 42 tons of gold, more than double what they bought in the whole of last year.

Buying gold is as ordinary for them as eating and sleeping, and it is a "must-have" for foreign exchange reserves and monetary stability management.

Speaking of which, we must also mention China.

As one of the world's largest gold-consuming countries, although China has seen a slowdown in gold jewelry sales, the sales of gold bars and coins are soaring.

The World Gold Council has said that China's gold investment demand and gold prices are "in the same breath and fate."

Why do Asians love gold so much?

Paul Wong, a market strategist at Sprott Asset Management, revealed the secret to us: "In Asia, gold is easily exchanged for money and is the most reliable savings tool in the hearts of the people."

This is a reasonable statement; gold is the most stable and value-preserving "safe" in the hearts of our people.

Therefore, the Indian gold fever is not just about the reduction in tariffs; it is behind the deep affection Indians have for gold and the unique insights of Asians into gold investment.

In the tide of the global economy, gold is like a stable ship, carrying people's hopes and dreams, sailing towards a more prosperous shore.

We, the older generation, must also follow the times and learn more financial knowledge to make our money bags "shine" along with gold.