Peru Ups its Annual Gold Exports to India for 2014

Peru, the sixth-largest gold producer in the world, will likely have shipped more than $270,000,000 dollars worth of the precious metal to India by the end of 2014.

Peru's ambassador to India announced at the 11th India International Gold Convention that the two countries are considering entering into a Free Trade Agreement to better facilitate commodities trading. Such a deal could increase overall trade between the two countries by up to 2 billion dollars. Trade between the two countries has been growing an average of 25% year to year without the FTA, but a new deal could increase the growth to 60 to 70%.

India is currently the 2nd largest consumer of gold in the world behind China and the largest importer of gold. Imports from Peru currently make up about 0.06 percent of overall gold imports. The new FTA would allow India to bring in more gold in dore form. India primarily purchases refined gold from overseas, only about 10% of all the gold imported is in raw form. By purchasing more raw gold, India can save on pricing as well as support local manufacturing and refining jobs.

Peru's ambassador to India, Javier Paulinich told reporters "We exported $106 million in 2012 and it rose by 150 per cent to $270 million in 2013, and three Indian investors have invested in gold mines in Peru. The numbers are expected to rise in following years."

Peru produced approximately 5 million ounces of gold last year.