India currency devaluation causes gold, silver imports to surge 222%

June 24, 2011 - PRLog -- PALM BEACH GARDENS, Fla. – May statistics show that imports of gold and silver to India were $8.96 billion – a growth of 500% from April and 222% over last year.

Inflation rates in India have risen to 8.65% amid concerns surrounding the devaluation of the rupee and the erosion of the purchasing power of savings. The rupee has held its value against the struggling U.S. dollar, but it has fallen significantly against gold, silver, oil, and other food and energy commodities.

“Safe-haven physical commodity gold has a reputation as a valuable asset against weakened currencies,” said Frank Gaudino, managing partner at Lloyds Commodities, a precious metals wholesale dealer based in Palm Beach Gardens, Fla. “This is especially the case in India, as we’re noticing an acceleration in the recent trend of Indians opting to buy gold and silver bullion in order to protect their savings.”

The Reserve Bank of India, India’s central bank, purchased 200 tonnes of gold from the International Monetary Fund in late 2009. From the start of 2011, some 30 banks in India have been granted permission to import gold and silver. Further gold purchases are expected in coming months, as the Reserve Bank has issued licenses to seven more banks to import gold and silver.

Indian banks are therefore contributing to the massive increase in demand for gold and silver. Chinese banks are also catering to the increased demand of Chinese people for gold bullion for investment and savings purposes.

In fact, most of the world’s central banks are now diversifying from major currencies such as the dollar and euro into gold. In addition to India and China, these countries include Russia, Sri Lanka, Bangladesh, Mauritius, Mexico, Iran and Saudi Arabia.

Importantly, China was expected to surpass India as the world’s largest gold importer this year. After the most recent Indian import figures, this is now not certain.

Lloyds Commodities believes the increased demand for gold and silver from India and wider Asia is sustainable and that it will keep the precious metal market thriving. Lloyds offers the opportunity for independent retail dealers to join a two-way market for gold, silver, platinum, palladium and copper. As independent precious metal retailers build their businesses and maximize profits, they receive training, mentoring and software support from Lloyds.

For further information about capitalizing on the booming Asian gold and silver market, consider becoming a retail dealer with Lloyds, visit http://www.lloydscommodities.com/.

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About Lloyds Commodities

Lloyds Commodities is a wholesale dealer specializing in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. Lloyds maintains relationships with worldwide suppliers, financing institutions, and investment bankers to maintain client equity. Lloyds has extensive back-office support for day-to-day operations -- including trade confirmations and statements -- allowing its retail clients to focus on expanding and marketing their businesses. For more information about Lloyds Commodities, visit http://www.lloydscommodities.com/.