Acute shortage elevates gold rates to exorbitant heights
Posted on: 04/Mar/2014 12:11:54 PM
On bringing import restrictions for gold, the yellow metal has got a massive demand in the market. In the domestic market, it is sold at a 21 per cent hiked price compared to international markets like Hong Kong or Dubai. This has also given rise to increased numbers of gold smugglers.
Speaking to the chief executive officer of Gitanjali Exports, Sanjeev Agarwal, he stated that this 21 per cent increase in price counts to nearly Rs 4000 for every 10 grams of gold. This difference in price between domestic and international market is due to two reasons:
- 10 per cent customs duty
- 80: 20 rule that imposes a physical restrictions on importing the metal
Agarwal also added that banks will have to follow a number of procedures and paper works for importing gold. As it consumes more than 3 weeks time, this contributes to the delay in receiving gold. Adding fuel to the fire is the demand-supply gap that triggers the price furthermore.
