India's Gold Imports for September 5X What They Were in 2013

Last month, gold imports for India reached a new all-time high of $3.75 billion-- up from $682.5 million last year.

Gold imports for the country have been reportedly down in recent months, attributed to high duties placed on the precious metal last year, but what the numbers have not reflected is the dramatic rise in gold smuggling that has been taking place in order to circumvent the tariffs.

India is the world's largest importer of gold and last year officials placed a 10% duty on gold imports while at the same time banning the import of medallions and gold coins.

A rise in gold imports for September is expected annually, as India's festival season gets underway during the Autumn months, but this dramatic rise over the same month last year-- even in the face of high import duties-- suggests that gold demand is much higher than initially believed.

With a five-fold increase in official gold imports for September, it leaves many to speculate just how much of the precious metal also made it into the country illegally.

The rise in official imports has increased the country's trade deficit to an 18-month high of $14.2 billion.