India's Gold Imports Dip 47% In 2008

India's gold imports dipped 47% to 402 tonnes in 2008, reported the PTI quoting a top economist of National Commodities Exchange of India or NCDEX, who cited high prices as cause for the decline. According to the economist, Manasee Gokhale, December 2008 imports stood only at 3 tonnes compared to 16 tonnes in December 2007.

Gokhale said the economic crisis hit the demand for luxury goods, resulting in drop in demand for jewellery as well. The economist added that buying remained dull and prices rose up on global cues.

In spite of excellent market fundamentals for gold, the investors under pressure for survival have sold their gold and silver positions. This resulted in drop in gold prices till it reached $680/troy ounce levels.