DJ India Feb Gold Imports Slump To 11 Tons, Dn 81% On Yr -Trade

MUMBAI, Mar 04, 2008 (Dow Jones Commodities News via Comtex) --

Gold imports by India, the world's largest consumer of the metal, fell sharply during February to 11 metric tons from 59 tons a year earlier, a senior official with the Bombay Bullion Association said Tuesday.

"For the first two months of 2008, the country's gold imports were 16 tons compared with 112 tons a year earlier, as high prices continued to damp demand," said Suresh Hundia, president of the bullion trade body.

As for silver, no imports of the precious metal have been undertaken by the country since October, due to low domestic demand, said Hundia.

"Due to the low offtake locally, many traders are planning to re-export around 720 tons of their (silver) stocks, which are currently being held by government enterprises and banks," said Hundia.

Another 300 tons of locally produced silver is also likely to be exported by the end of April if prices of the metal continue to remain high, depressing local demand, he added.

Pure gold prices in Mumbai, the country's main bullion market, touched a record high of INR12,810 per 10 grams Wednesday, while spot silver was trading close to a record high of INR24,570 per 1 kilogram.

-By Swansy Afonso, Dow Jones Newswires; 91-22-2288-4212-18; swansy.afonso@dowjones.com

(END) Dow Jones Newswires

03-04-08 0221ET

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