Wednesday, August 30 2017
By GCRU Gold News on Wednesday, August 30 2017, 01:17
“We still operate the way my father did for 50 years,” said Ghugre, 52, explaining that transactions were typically in cash and were not always recorded. “For small jewelers and the unorganized sector, most of our sales happen through personal connections. Sometimes they don’t want bills, but the jewelers can’t say no to them.”
That way of doing business is under threat as the world’s second-largest gold market faces Prime Minister Narendra Modi’s campaign to bring India’s informal economy to book. About three quarters of the estimated $45 billion of the precious metal that is traded in the country each year makes its way through thousands of family-run jewelry shops that have catered for centuries to the nation’s love of gold.
Thursday, August 17 2017
By GCRU Gold News on Thursday, August 17 2017, 02:09
India has banned the export of gold products with purity above 22 carats with immediate effect, a move that the industry sees as a way of curbing irregularities in the trade.
The Directorate General of Foreign Trade issued a notice limiting shipments of jewelry, coins and medallions to 22 carats or below, without giving a reason.
Monday, August 14 2017
By GCRU Gold News on Monday, August 14 2017, 02:23
India's gold imports are likely to jump by a third in 2017 to 750 tonnes on restocking by jewellers and as good monsoon rainfall is expected to boost demand in rural areas during the upcoming festive season, a leading refiner told Reuters.
Monday, July 3 2017
By GCRU Gold News on Monday, July 3 2017, 04:56
Paytm, which has sold more than 100 kg of gold on its platform, is in discussions with jewellers across the country to enable buyers to redeem their digital gold in the form of jewellery.
In April this year, the digital-payments firm had partnered with MMTC-PAMP to allow consumers to purchase 24K 999.9 purity gold on its platform and store it in MMTC-PAMP’s secure vaults free of charge. Customers, who could invest one rupee onwards, currently can either sell the gold back online or can get accumulated gold of more than one gram delivered to their homes.
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.