Gold imports in India for 2008 dipped by almost 47 per cent to 402 tonnes, an economist said.

"High prices have been the culprit this year as gold imports in India for 2008 dipped by almost 47 per cent to 402 tonnes. The December 2008 gold imports stood at only 3 tonnes versus the 16 tonnes in December 2007," National Commodities Exchange of India economist Manasee S Gokhale said in a report.

The economic turmoil has also hit the demand for luxury goods and hence the demand for jewellery has fallen considerably.

Buying remained dull and prices remained high on global cues, Gokhale said.

Although the gold market fundamentals look excellent, investors have been struggling for survival and in this attempt have sold even their gold and silver possessions. As a result, gold prices have dropped continuously till they hit the $680/troy ounce levels.

As compared to equities or other commodities, the percentage fall in gold prices have been lesser, he said.

Commenting on the movements of gold price in 2009, Gokhale said that if the downturn continues and there is deflation, gold would do well as it will emerge as a safer investment option.

"What appeared to be excellent market conditions in 2008 have all vanished into thin air and staring us in the face is the growing uncertainty created by the financial crisis," Gokhale said.