India’s gold imports to plunge in ’24 – experts

India’s gold imports are expected to plunge in 2024 by nearly a fifth from 2023, as record-breaking prices push retail consumers towards exchanging their old jewelry for new designs, Reuters reported on Wednesday, citing industry experts.

The high cost of gold is significantly impacting affordability, said Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA).

Consumers are opting to exchange old pieces for new, saving money on the actual gold content. This trend is because they only pay for the making charges and taxes on the new design, not the underlying metal.

Vinayak Patil exchanged 50 grams of old gold jewelry for a new design to save money for his daughter’s wedding. Buying new jewelry would have cost 475,000 rupees, but exchanging old pieces only cost him 90,000 rupees.

Old jewelry, also known as scrap, is recycled and reused in new designs. Data from the World Gold Council (WGC) shows a 10 per cent year-on-year increase in scrap supplies during the March quarter of 2024.

India’s gold imports are expected to drop by 20 per cent in 2024 due to decreased demand from high prices and higher scrap supplies. This marks a significant decline from the 744 metric tons imported in 2023.