Soaring gold price forced Indians melt down their jewelery to catch high prices. This has turned India from world's top gold importers to gold exporter country. India's gold import for Feb 2009 is NIL and same will be repeated for Mar 2009. The gold exports during these 2 months turns to be 6 tonne. Demand in gold reduced as India stopped importing it and there is increase in supply as we export gold now. The stocks from individual investors have come out to open market from their locker. This has restricted global gold price around US $ 950 which had touched US $ 1,030.80 as last year's high.
Every Indians have good quantity of gold.
As Indian prices of gold fell below domestic markets an arbitrage opened. During 2008, gold import had almost halved to 396 tonne. Our annual import is 400 - 800 tonne. It prevailed the lower end though population and individual income rose steadily.
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