Not Just Indian Buyers Are Price-Conscious

Indian sellers are too, particularly sellers of scrap gold. A Business Standard article points out that "Scrap gold sales fall, but early recovery expected."

Scrap gold sales declined by 50 per cent during the first two months of the current calendar year, as investors held stocks back in anticipation of a price rebound....

Gold availability from domestic scrap recycling declined to 17 tonnes in the fourth quarter ending December 2009, from 18 tonnes, 23 tonnes and a staggering 64 tonnes in the third, second and first quarters of the same year, respectively. In the fourth quarter of calendar year 2008, gold availability from domestic refining was 20 tonnes, according to World Gold Council data.

The rest of the article forecasts an increase because prices are recovering.