Gold recycling may rise in India on price gains
Tuesday, 29 June 2010
MUMBAI, June 28 (Bloomberg): Consumers in India, the world's biggest gold user, may increase recycling of jewelry should bullion prices continue to rise, paring imports of the metal, according to Tribhovandas Bhimji Zaveri Pvt.
"If prices go up further then we might see a steep rise in recycling," Shrikant Zaveri, chairman of the nation's oldest- gold jewelry retailer, said in an interview in Mumbai. "Imports of gold will definitely have an impact."
Gold, which reached a record $1,265.30 an ounce on June 21, is set for a 10th straight annual increase as investors seek to protect their wealth on concern currencies will depreciate. The price may climb to an all-time high and trade in a range of $1,400 to $1,500, Zaveri said, without providing a time frame.
"We have seen a little shift in the buying pattern toward coins and bullion," he said. "If there is a sharp rise, that might probably continue."
India's gold imports slumped to between 16 to 17 metric tonnes in May, from 34 tonnes in April, Citigroup Inc economists Rohini Malkani and Anushka Shah said in a report June 21. Higher prices have started to hurt jewelry consumption, they said.
Futures in New York have advanced 15 per cent this year and reached a record $1,266.50 on June 21.
Plans by the 145-year-old jeweler to sell shares in an initial public offering have been delayed, Zaveri said. The sale should happen by the end of this year, he said. Zaveri said October 30 the share sale would be concluded by the second-quarter.
"The world market scenario wasn't right so we took a decision to delay," he said. "We are on our way to the IPO."
Gold on the Multi Commodity Exchange of India Ltd., the world's second-biggest bourse for bullion, has risen 29 per cent in the past year and reached a record 19,198 rupees per 10 grams on June 8. Futures added 0.1 per cent to 18,814 rupees on June 26.
"If prices go up further then we might see a steep rise in recycling," Shrikant Zaveri, chairman of the nation's oldest- gold jewelry retailer, said in an interview in Mumbai. "Imports of gold will definitely have an impact."
Gold, which reached a record $1,265.30 an ounce on June 21, is set for a 10th straight annual increase as investors seek to protect their wealth on concern currencies will depreciate. The price may climb to an all-time high and trade in a range of $1,400 to $1,500, Zaveri said, without providing a time frame.
"We have seen a little shift in the buying pattern toward coins and bullion," he said. "If there is a sharp rise, that might probably continue."
India's gold imports slumped to between 16 to 17 metric tonnes in May, from 34 tonnes in April, Citigroup Inc economists Rohini Malkani and Anushka Shah said in a report June 21. Higher prices have started to hurt jewelry consumption, they said.
Futures in New York have advanced 15 per cent this year and reached a record $1,266.50 on June 21.
Plans by the 145-year-old jeweler to sell shares in an initial public offering have been delayed, Zaveri said. The sale should happen by the end of this year, he said. Zaveri said October 30 the share sale would be concluded by the second-quarter.
"The world market scenario wasn't right so we took a decision to delay," he said. "We are on our way to the IPO."
Gold on the Multi Commodity Exchange of India Ltd., the world's second-biggest bourse for bullion, has risen 29 per cent in the past year and reached a record 19,198 rupees per 10 grams on June 8. Futures added 0.1 per cent to 18,814 rupees on June 26.