Gold imports by India, the biggest bullion consumer, likely reached a record last year driven by investment demand, according to the World Gold Council.
Purchases were about 800 metric tons, compared with 557 tons in 2009.
This is a very bullish sign because, historically, Indian demand for gold declined when the price of gold spiked. Gold set new records in 2010 and still Indian demand increased substantially.
This may be the reason for this statement:
“Our assessment is demand will continue to be strong,” he said. “Price is no longer a factor.”
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