MMTC expects its gold imports to jump 40% in 2011-12

State-owned trading giant MMTC today said that its import of gold in the current fiscal is expected to increase by more than 40% with the yellow
metal fast emerging as a safer investment option.

"We aim to import 350 tonnes of gold this fiscal due to rising demand for the nobel metal. Also, its value as a safe option, in the current volatile market, is rising," MMTC Director (Marketing) Ved Prakash told reporters here.

The company almost doubled its import of gold at 45 tonnes during the April-June quarter this year compared to the same period last year, he added.

Besides gold, the demand for silver is rising as it gives better returns, he noted. "We plan to import 1,200 tonnes of silver in the 2011-12 fiscal, up from 880 tonnes in the last year," Prakash said.

Silver prices have been touching new peak because of robust demand amid short supply in the global market, experts said. Majority of silver in India is used in the production of ornamental items like jewellery, utensils and gift articles.

India, the world's largest consumer of gold and silver, buys more than 4,000 tonnes of silver and over 960 tonnes of gold annually.