The price of Gold in India has gone up to a record high, because of a 12.5% duty that has been applied to the import of gold and gold-related products. This protectionist technique has pushed Gold prices to rise in India to record levels.
The prices of Gold in India now include a 12.5% import tax and 3% GST tax. As India looks to tax produce that is not made in India.
The high prices prompted some Asian consumers to sell back physical gold stock this week in a hunt for profits, with cheaper silver emerging as a preferred investment.
Gold buying stagnated in India as local rates soared, though some investors used temporary price dips to buy, hoping to cash in on a further leg up.
A surge in low-quality gold is making its way to shop counters as retailers look to profit from this latest surge.
India main aim is to stop the import of cheaper gold from neighbouring Pakistan and Bangladesh. Although, the Blackmarket is booming between the countries with a diverse network of operators profiting from the rift between the countries.
India has introduced stamps of authenticity, however, the supply of these gold coins are not readily available.
The demand for gold remains sluggish and the legal imports have plunged due to the duty hike. In July imports were be less than 40 tonnes.
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