Comment: Ding! Ding! Ding! We have a winner!!!!!!!!

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Ding! Ding! Ding! We have a winner!!!!!!!!

Right you are Steve
Gold premiums jump as physical demand outstrips supply
http://in.reuters.com/article/2013/06/26/markets-india-gold-...

Wed Jun 26, 2013 8:02pm IST

(Reuters) - Gold premiums doubled in India on Wednesday as suppliers struggled to meet surging demand after a ban on consignment imports, but futures prices fell to their lowest in more than a month as international gold prices fell due to a strong dollar.

India, the world's biggest buyer of gold, now requires importers to pay upfront for inventory, making it difficult for smaller jewellers with lower working capital to source supplies. The government also raised the import duty to 8 percent in May to keep a lid on the surging current account deficit.

"There may be some demand from jewellers for raw material," said Bachhraj Bamalwa, former chairman of All India Gems and Jewellery Trade Federation, adding that premiums charged on London prices shot to $20 an ounce on Wednesday from $8-$10 on Tuesday.

Most of the supplies are being met by privately held trading houses and state-run agencies such as Metals and Minerals Trading Corp of India Ltd (MMTC.NS), State Trading Corp (STCI.NS), and PEC Ltd through their imports in April and early May as banks await guidelines from the central bank on outright cash purchases.

"We are unable to supply, though there is demand ... we give deliveries after 2-3 days," said Harshad Ajmera, proprietor of wholesaler JJ Gold House in Kolkata.