Monday, June 26 2017
By GCRU Gold News on Monday, June 26 2017, 09:19
India, which vies with China as the top consumer of bullion, is working on new policies to improve transparency and help expand its $19 billion gold jewelry industry, according to people with knowledge of the matter.
The plans being worked out by the finance and commerce ministries along with industry groups should be finalized by the end of March, the people said, asking not to be identified because they aren’t authorized to speak publicly. D.S. Malik, spokesman for the finance ministry, didn’t answer calls to his cellphone, while a spokeswoman for the commerce ministry didn’t reply to an email seeking comment.
The start of a spot bullion exchange, to make gold supply more transparent and help enforce purity standards, is under consideration, the people said. An import tax of 10 percent could also be reduced as the government seeks to eliminate smuggling, they said. The plans also include a dedicated bank for the jewelry industry, according to one of the people.
Friday, June 9 2017
By GCRU Gold News on Friday, June 9 2017, 04:59
India, which vies with China as the world’s top gold consumer, saw a fourfold increase in imports of the precious metal in May as traders stocked up fearing that the government would fix a higher rate for jewelry under a new national goods tax to be implemented from next month.
Overseas purchases advanced to 126 metric tons in May from 31.5 tons a year earlier,
Thursday, June 8 2017
By GCRU Gold News on Thursday, June 8 2017, 09:07
On 1st July, India’s labyrinth of taxes will be replaced with a simple, nationwide Goods & Services Tax (GST). This is the biggest fiscal reform since India’s liberalisation in the early 1990s. While gold consumers will face a slightly higher tax rate, and the industry will go through a period of adjustment, we see the net impact on the gold industry as being positive. The gold supply chain should become more transparent and efficient, and the tax reform can boost economic growth, which we see as supporting gold demand.
Sunday, June 4 2017
By GCRU Gold News on Sunday, June 4 2017, 03:33
India will tax gold at a rate of 3 percent under a new nationwide sales tax that comes into effect on July 1, the government said on Saturday.
The Goods and Services Tax (GST) on gold, which was lower than industry expectations of around 5 percent, will replace a number of federal and state levies.
"Currently, the industry pays taxes around 2 to 2.5 percent, so 3 percent is almost as good as no impact,"
Thursday, June 1 2017
By GCRU Gold News on Thursday, June 1 2017, 11:33
India’s hunger for gold is not surprising—people have been complaining about the “drain of gold” into India for ages, starting with Pliny the Elder, the Roman writer of the 1st century AD. But where in India does the gold go to? And who are the people who buy all this gold jewellery?
The short answer to the first question is, in one word: Kerala.
Thursday, May 18 2017
By GCRU Gold News on Thursday, May 18 2017, 04:15
A survey partly financed by India’s Citizen Environment & Consumer Economy was conducted on 61,000 households as reported in LiveMint. The survey found out that nearly two-thirds of the households surveyed did not prefer to deposit their gold holdings with banks and roughly the similar size found that the interest rate of 2-3 percent given by the government was not enough.
It was also found that the three main motivations that drive people to hold gold are security (or capital conservation), scope of capital gains, and liquidity, in that order of importance.
Tuesday, May 9 2017
By GCRU Gold News on Tuesday, May 9 2017, 01:59
India's gold imports in April more than doubled from a year ago to 75 tonnes on strong demand during a festival that prompts purchases and as jewellers stocked up ahead of a new national sales tax, provisional data from consultancy GFMS showed.
Wednesday, May 3 2017
By GCRU Gold News on Wednesday, May 3 2017, 03:18
With cash flow almost normalising after demonetisation, customers on Friday thronged jewellery shops across the country to usher in Akshaya Tritiya.
"We are seeing good footfall in our stores. In the last two months, after demonetisation, people have again started buying gold. We expect sales to go up by 40 percent this Akshaya Tritiya compared to last year as prices are almost at the same level,"
Wednesday, April 26 2017
By GCRU Gold News on Wednesday, April 26 2017, 02:37
How come a country with an insatiable demand for the yellow metal has little say in the global market? With the right policy, India can become a dominant player - See more at: http://www.governancenow.com/views/columns/why-india-needs-a-bullion-bank-gold-monetisation-scheme-banking#sthash.4oSEwWoy.9mJScviN.dpuf
Friday, April 7 2017
By GCRU Gold News on Friday, April 7 2017, 03:48
Gold may become costlier for Indians if the government accepts chief economic advisor Arvind Subramanian's suggestion to put the yellow metal in the 12% tax bracket under GST.
With an import duty of 10%, tax on gold may turn out to be 22%, which will reduce its consumption in the physical form in the second largest gold consuming nation in the world.
Wednesday, April 5 2017
By GCRU Gold News on Wednesday, April 5 2017, 09:58
Demonetisation of high denomination currency had checked gold smuggling for a few months as the domestic and cross-border unaccounted cash flow through informal (hawala) networks had been choked.
Data says, around 120 tonnes of gold was smuggled in India in 2016. Bullion traders fears that this year the quantity of smuggled gold could go up.
Saturday, April 1 2017
By GCRU Gold News on Saturday, April 1 2017, 03:42
Gold demand in India rose this week due to a festival and as local prices adjusted to an appreciating rupee, while higher prices kept a check on demand elsewhere in Asia.
The Gudi Padwa festival, also known as Ugadi in some parts of the country, was held earlier this week. Buying gold during festivals is considered auspicious in the world's second-biggest market.
The demand is likely to remain firm next month due to another festival, Akshaya Tritiya, and the start of the wedding season, Kothari said.
Friday, March 24 2017
By GCRU Gold News on Friday, March 24 2017, 01:11
Facing much difficulty in import of dore, the term for unrefined gold, India's only refinery with LBMA (London Bullion Market Association) accreditation, MMTC Pamp, has diverted its focus on domestic jewellery scrap collection, to meet its raw material needs.
A joint venture between government-owned MMTC and Switzerland-based Pamp SA, the world’s leading bullion refiner, it has set up 10 scrap collection centres across major cities. These have testing machines and other equipment needed for checking purity of gold content in used jewellery. With these, it has recovered three tonnes of gold through scrap jewellery so far this financial year.
Saturday, March 11 2017
By GCRU Gold News on Saturday, March 11 2017, 00:51
The government has collected 6.4 tonnes of gold under the scheme for monetising the metal, Parliament was informed today.
Launched in November 2015, the scheme intends to mobilise idle gold held by households and institutions so that the wealth can be put to productive use.
Thursday, March 9 2017
By GCRU Gold News on Thursday, March 9 2017, 02:14
A barrage of policy initiatives aimed at purging India of black money and instilling greater transparency rocked India’s economy last year, including its gold market. The most dramatic was the radical decision to demonetise over 15 trillion rupees, around US$220bn. Other policies – such as the re-introduction of excise duty – affected the gold market, too. And the forthcoming Goods & Service Tax (GST) will change the shape of the industry. India’s gold market faces some short-term headwinds. But looking ahead, these policies may deliver a stronger economy and a more transparent gold industry, underpinning gold demand, which we expect to be between 650-750t in 2017.
Wednesday, March 8 2017
By GCRU Gold News on Wednesday, March 8 2017, 23:55
Gold imports by India, which competes with China for the role of world’s biggest consumer, are said to have risen almost three-fold in February from a year earlier as jewelers increased stockpiles before the festival and wedding period that starts next month.
Shipments jumped 175 percent to 96.4 metric tons in February from a year earlier.
Wednesday, March 1 2017
By GCRU Gold News on Wednesday, March 1 2017, 02:36
Gold demand seems to be returning after several months of lull in the past year. In the first two months of this year, January and February, the average monthly import has been around 50 tonnes. Except January, October and November of last year, the monthly average during 2016 was 30 tonnes.
Thursday, February 2 2017
By GCRU Gold News on Thursday, February 2 2017, 03:03
The gold business is showing scant signs of revival after being severely hit by demonetisation. This is evident as gold imports have only marginally increased from last month. According to data provided by Ahmedabad Air Cargo Complex, gold imports in January were nearly 70% lower than in the same period last year. Imports stood at 2.8 metric tonnes (MT) till Jan 30 this year, against 9.42 MT in January 2016.
Monday, January 30 2017
By GCRU Gold News on Monday, January 30 2017, 01:31
Former Reserve Bank Governor Venugopal Reddy today said the government needs to come out with a comprehensive 'gold policy' owing to its role in the economy and to handle the precious metal in a better way.
He maintained that gold is the ultimate currency in the world, though domestically possessing it is part of Indian culture and for women it acts like insurance.
Thursday, January 26 2017
By GCRU Gold News on Thursday, January 26 2017, 01:45
Indian households, together the world’s largest hoarders of gold, hold a record 23,000-24,000 tonnes of the prea record 23,000-24,000 tonnes of the precious metal, worth at least $800 billion, despite a sharp fall in international prices from their peaks in 2011, according to a comprehensive study of the Indian market by the London-headquartered World Gold Council (WGC).
The country’s gold demand has been shaken a tad after demonetisation, as some customers feared a crackdown on gold holding as well, but long-term prospects remain bright with demand expected to average at 850-950 per annum by 2020, the WGC said.