India exports 30 tons gold coins, scrap gold to Dubai

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High gold prices, slumping jewellery sales and rising stock market conditions are prompting several Indian bullion dealers to export scrap gold and gold coins to several destinations in the Middle East, especially to Dubai.

In the last few years, India has been the largest importer and consumer of gold. In 2008, India imported around 400 tonnes of gold, which is mainly used for making jewellery items and gold coins. But in the last five months of 2009, India’s gold imports have fallen to negligible levels, compared to previous years, that bullion dealers are now importing scrap gold to Dubai.

India has so far imported only around 47 tons of gold this year.