Gartman: Indian Gold Demand May Challenge China If Smuggling Report Is True

New York (Sept 24)  India may challenge China to reclaim the spot as the world’s No. 1 gold consumer, assuming that a report in the Hindustan Times is correct, says investor and newsletter writer Dennis Gartman. The newspaper carried a report Tuesday estimating that 50 metric tons of gold was smuggled into the country in the previous 10 days amid a surge for demand during the festival season. The smuggling is to avoid the government’s import restrictions, including a 10% duty and so-called 80-20 rule that require 20% of all imports to be re-exported as a finished product. The smuggling supposedly occurred on land routes due to tightened airport security. Says Gartman: “If this report is even nearly true rather than wholly true, it shall mean that India is putting China to test once again as the world’s largest consumer of gold.”

Source: KitcoNews