The industry is estimated to have incurred a loss of Rs 10,000 crore (Rs 100 billion).
Gold prices tumbled by Rs 3,350 to Rs 72,300 per 10 grams in the local market in New Delhi on Tuesday amid subdued demand by jewellers after the government announced the customs duty cut on the yellow metal and silver to 6 per cent.
The iconinc Zaveri Bazaar in south Mumbai does business of around Rs 3 trillion a year.
Dealers anticipated a sharp rise in jewellery demand this wedding season, but then came demonetisation.
Globally, gold declined from the highest level.
The customs duty from gold imports could be approximately Rs 8,000 crore, about less than half of what was collected a year ago.
Gold is usually seen as a safe-haven when stocks are falling or when inflation is rising. With prices of the yellow metal hovering near record highs, people are also putting off their jewellery purchases. Along with a subdued marriage season, the orders with price open and settled on delivery day, too, are getting cancelled. Apart from high, volatile prices, there is no gold rush yet for the safe-haven asset, crimping demand.
The government has retained 10% duty on import of the yellow metal.
Report says gold being exported by persons of Indian origin and routed through Dubai
The coins can have the face and names of the owner embossed on them.
Jewellery stores remained deserted as buyers deferred their non-essential purchases awaiting softness in gold prices.
Only three or four tonnes is estimated to have been mobilised under the scheme.
Jewellers sold huge quantities of precious ornaments at a premium of up to 50%.
Orders for the festive season abroad begin from next month.
Gold bullion purchases across Asia slowed this week as a long rally in prices discouraged buyers.
A Delhi University alumnus with an MBA in finance and a doctorate, Vaish started his career as a banker in 1984, became an academician a few years later and joined the capital market in 1998.
Finance Minister Arun Jaitley's decision to cut arbitrage may ensure that the standards of purity of the refined gold in the Indian market meet the global benchmark
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed.
For the second straight year, the gems and jewellery industry is set for almost a washout of business on Akshaya Tritiya as only about 10 per cent of pre-Covid sales of 2019 are expected on Friday amid the raging pandemic sapping footfalls and purchasing power of people.
Most consumers are going for token buying of lesser value and are waiting for price correction for purchase of wedding jewellery.
Uncertainties like the bankruptcies bill, rising non-performing accounts at banks and political uncertainty are expected to drive gold demand higher in India.
Dhanteras has cheered up jewellers as it has turned out to be the best in three years, thanks to the lower price of the yellow metal and pent-up demand. In Mumbai's Zaveri bazaar, buyers came in out force and jewellers did not have to depend on freebies to induce sales, even though all of them had announced some offers. In fact, more discounts were announced for diamond and studded jewellery.
Mehta's export company is the largest integrated gold player in the world.
Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 248 crore in February, making it the second consecutive month of withdrawals as investors preferred equities over other segments on record SIP flows. Net outflows from the gold ETFs were at Rs 452 crore in the month of January. Prior to that, the asset class had seen a net investment of Rs 313 crore, according to the data of Association of Mutual Funds in India (Amfi). Despite the outflows, the category witnessed an increase in net assets under management (AUM) of gold ETFs to Rs 18,727 crore at the end of February from Rs 17,839 crore in January-end.
Conversion into jewellery during redemption would entail 15-20% wastage and making charges, rendering the scheme inefficient
Gold import stood at 18 tonnes in May, according to the data provided by the Bombay Bullion Association. Gold prices ruled over Rs 14,600 per 10 grams level in both spot and futures markets last week. In the international markets gold prices were at 938.55 an ounce (28.34 grams).
Experts recommend buying gold as the fundamentals supporting a rally have not changed.
Confidence had ebbed in the last few years due to default by some errant domestic retailers and exporters. Moreover, many jewellers are believed to have diverted the fund collected through monthly deposit schemes to pay 'mark-to-market' margins on various loans.
For India to monetise gold, it is not the institutional depositor that policymakers must target but the average retail depositor.
Mandatory hallmarking of gold would be a positive in making the gold market more organised. Mandatory hallmarking would come into effect from January 15, 2020, with a one-year transition period for trade to sell existing inventories. Experts also expect more policy measures next year to bring in more transparency in terms of gold as an asset class.
Gold is seen as a preferred asset for all types of investors, even central banks.
During the raids, Rs 53 lakh, $1,900, about 540 grams of gold and bullion and 1.5 kg of gold jewellery were seized, sources in agency said and added that one of the locations searched was a house in south Delhi where Lalu Prasad Yadav's son and Bihar Deputy Chief Minister Tejashwi Yadav was present.
A downturn in Indian demand could hit global gold prices.
While the gold policy covers every aspect, from sourcing gold to trading and investing in it, experts assert that the policy is incomplete if mining of gold in India isn't promoted.
Dealers are selling gold at a discount of Rs 175 for 10 gm.
Gold imports into India, the world's largest consumer, remained almost stagnant for the second straight week as high prices hit demand and brought domestic sellers to the market, traders said.
The Bill to amend the Bureau of Indian Standards Act has been passed.
Official sources say that the finance ministry is aware of the possible spike in smuggling activity and has already asked intelligence agencies to tighten their vigilance and come down on the unofficial entry of gold into India.
'Gold could return 10% to 12% in the next two-three years.'
Gold prices fell to a 5-year low of less than $1,100/ounce.
