GST impact - Demand for gold shoots up by 37%
Posted on: 05/Aug/2017 10:25:15 AM
The demand for gold in the quarter of the last ended June was up by 37% to 167 tons. As compared to this, the corresponding figure in the same quarter of the previous year was 122 Tons.
As the traders bought more gold because of the GST implementation, the demand for gold went up. In the aspect of total value, the demand for gold during the just-ended quarter was Rs. 43600 Crores. The corresponding figure for the previous year was Rs. 33000 Crores.
The demand for jewellery in the last quarter went up by 41% to 127 tons. The corresponding figure for the previous year was 90 tons. The price of 10 grams gold has gone up by 13% and is Rs.27013.
The World Gold Council informed that the price increase is due to the depreciation of Indian Rupee and the increase in demand for gold.
The World Gold Council has estimated that the demand for gold will come down during the 2nd quarter of the current financial year.
The demand for gold may be due to various recent policy decisions of the government as well as the monsoon season rains.
The Managing Director of the World Gold Council, P. R. Somasundaram, informed that the demand for gold for the entire financial year may be 650 tons – 750 Tons.
Due to the implementation of GST, all details pertaining to gold trade will be available. This will eliminate illegal gold trade.
The Gold Import Tax must be reduced from the present 10%. As the Import Tax is rather high, this provides the scope for smuggling of gold.
In the international market, the demand for the gold for the recent quarter was down by 10% to 953 tons. The corresponding figure for the previous year was 1056 tons.
