As I wrote here exactly a week ago, I saw that Indian gold premiums would fall. And they did.
Premiums have indeed dropped from $90/ounce to $30/ounce, that's more than a 50% drop.
So with premiums of gold going back to this low level, gold jewelry will be cheaper for the people to buy and I expect pent-up demand to come back.
As you can see on this chart, the premiums have come back to the 2012-2013 level of $30/ounce.
This also means that the India gold import trade will go back to the 2012 levels. I expect that the official numbers will double. This will add at least another 30 tonnes/month of demand from India, which balances the recent decline in demand from China.
Premiums have indeed dropped from $90/ounce to $30/ounce, that's more than a 50% drop.
So with premiums of gold going back to this low level, gold jewelry will be cheaper for the people to buy and I expect pent-up demand to come back.
As you can see on this chart, the premiums have come back to the 2012-2013 level of $30/ounce.
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| Local gold price premiums |
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| India Gold Trade (In Gold We Trust: Koos Jansen) |
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