Consumers look to relatives abroad to buy cheap gold
Gold sales is very slow this festive season
Hyderabad: Gold sales have been slow this festive season despite a global fall in bullion rates. Experts however, are not expecting the sales to perk up too much as the dip in bullion rates has translated only partially to the rates here due to taxation issues. Gold sales, therefore, are predicated to be lower than last year’s sales during the festive period.
The current rate for 24 carat gold is Rs 27,270 per 10 grams. It is relatively higher than gold available in the international market, although it has dipped from Rs 30,000 plus, the prevailing price three months back.
Also the “auspicious days” for buying gold during this festive season are fewer in number, which might also limit the days for buying gold. Many people are also asking their NRI relatives to buy gold for them from abroad as the prices outside are cheaper.
“Currently, the sales are very slow in Hyderabad and we are expecting it to be 20 to 30 per cent lower this festive season compared to last year. The fall in the bullion prices, however, will have some positive impact but it’s very difficult to say how much,” said Mohanlal Gupta, the advisor to Twin Cities Gold Merchants’ Association.
Since the tightening of norms by the Reserve Bank of India, aimed at restricting sale of gold coins and bars a few months back, there has been a huge dip in gold sales and are yet to recover
“Due to ban on gold imports, jewellers have to pay a premium of 8 to 10 per cent to the banks. Another 10 per cent import duty results in 20 per cent premium being passed on to the Indian consumers.
They are paying at least 25 per cent more than international rates. As consumers have to pay more here, it is simply easier to buy gold if anyone is going abroad,” said Praveen Kumar, the secretary of Twin Cities Jewellers’ Association.
( Source : dc correspondent )
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