1. IIGC Presentation 13th August, 2016
INDIAN GOLD MARKET
IIGC Presentation
13th August, 2016

2. What is market today……….
Declining gold imports good news for PM Modi and India
The fall in gold imports sixth month in a row will reduce the trade deficit and strengthen the already strong current account deficit (CAD) situation at a time when the global economy is still facing challenges.
But Reportedly 59 tons of gold are smuggled into the country in first six months……..

3. Savings in Gold In India

4. Market is in discount

5. Demand of gold in first half of the year

6. 48.76

7. Projection for H2 Positives Negatives
Monsoon is so far good. Acreage has increased by 5% than last year.
no news of flood disruption. Re-sowing is not happening
23.55% hike in salary in 7th Pay commission. Arrears will be paid this month onwards
Retirement benefit also increased by 157%
Low CAD on account of low commodity price especially Oil
Negatives
Dr. Rajan is exiting RBI in September
Maturity of FCNR (B) starting September (But RBI has adequate Forex Reserve)
Indian Expatriates hit hard because of low oil price in Gulf ((60% of NRI remittance comes from Gulf countries)

8. Demand for Second Half of 2016
Price outlook
Price Outlook based on
current discount
Rs /10gm
Price Outlook based on
no discount
Average Price – 32421/10gm
Demand for Second Half of 2016
Investment – 100 tons
Jewellery – tons