Good monsoon, farm loan waiver -- the two key reasons behind more customers in jewellery shops
'...we say that sport is this great phenomenon that is so wonderful and it's healthy and it's good for us all. Let's make sure that it doesn't bring suffering or disadvantage to anybody because of a major event that's come.'
Dhanteras' buying seemed to have been sparked by the belief that prices would remain firm
India's annual gold consumption is about 800-900 tonnes, of which about 750 tonnes is imported. However, in 3-5 years, domestic refineries would meet the whole demand, reports Rajesh Bayani.
The Reserve Bank of India (RBI) has increased its gold purchases, as part of its foreign exchange (forex) reserves. In the first half (H1) of calendar year 2021 (CY21), the addition of gold to India's forex reserves has been the highest - on a half-yearly basis -at 29 tonnes. Now, the RBI's gold holding - as a proportion of its forex reserves - has for the first time crossed 700 tonnes.
Gold looks cheap compared to the stock markets that are highly overbought at the moment.
Demand bounces back but uncertainty over GST rate for jewellery casts a shadow over future.
Forecasts of a further rise in bullion prices keep Indians away from selling gold.
India's gold demand recovered during the January-March period to witness a growth of 37 per cent at 140 tonne compared to the same quarter of 2020, due to ease of COVID-related restrictions, pent up demand and softening of prices of the yellow metal, according to the World Gold Council (WGC). The overall gold demand stood at 102 tonne during the first quarter of 2020, as per WGC data. Gold demand in value terms increased by 57 per cent during the first quarter of this calendar year to Rs 58,800 crore compared to Rs 37,580 crore in the corresponding period of 2020.
In 2012, Q4, the country's demand for the yellow metal during stood at 260.3 tonnes and for the entire year it was 863 tonnes.
In the second half of April, the discount on gold came down to $3 an ounce.
Custom authorities have been keeping strict vigil on the cargo movements from Bhutan, Taiwan, China, Afghanistan, South Korea Japan, and Dubai since January.
India's gold import bill, estimated at $3 billion in May, is seen falling further this month
In April and May, there were additions by RBI of 600 kg and 900 kg. RBI's total gold holding is now 561.9 tonnes.
Gold hallmarking is a purity certification of the precious metal and is voluntary in nature at present.
India's gold demand increased by 19.2 per cent to 76.1 tonne during the April-June quarter this year, largely due to low base effect, owing to the nationwide lockdown that hit economic activity last year, the World Gold Council (WGC) said in a report. The overall gold demand during the second quarter of 2020 calendar year stood at 63.8 tonnes, according to the WGC's 'Gold Demand Trends Q2 2021' report. In value terms, India's gold demand witnessed 23 per cent growth during April-June quarter at Rs 32,810 crore, compared to Rs 26,600 crore during the corresponding period of 2020.
The government has asked jewellers to provide information on purchases of gold bars or jewellery worth more than Rs 500,000 by the end of this month, a move seen keeping a check on big transactions amid rising smuggling.
Import is returning to the normal prevailing three years ago
Consumers have to watch out for four marks on hallmarked gold jewellery: BIS mark, purity in carat, assay centre's name and jewellers' identification mark.
Regaining the lost sheen, sales of gold jewellery and coins are set to touch pre-COVID levels in volume terms on the auspicious Dhanteras as easing pandemic concerns and pent up demand saw consumers flocking to stores to buy the precious metal. Increased footfall at stores and brisk sales online as well as relatively softer gold prices compared to record Rs 57,000 per 10 grams level in August spurred increased buying, especially light weight offerings, on Tuesday. Dhanteras is considered to be auspicious for buying precious metals and other valuable items.
Gold, which lost its sheen to some extent in the second half of 2021, is likely to regain the glitter in the New Year and cross the Rs 55,000-per-10-grams level amid pandemic woes, inflation worries and stronger US dollar. After a stellar run up in 2020 when the yellow metal touched a record high of Rs 56,200 on the MCX in August, the prices are near Rs 48,000 per 10 grams now. This is roughly 14 per cent lower from the all-time highs and 4 per cent lesser compared to January 2021 levels.
This is good news for the central government at a time when crude oil prices are rising.
Gold was Rs 28,100 per 10 gm on July 26, 2014.
Globally, jewellery buying fell 14%, investment slid 11%.
The rouble has been falling steadily since early November and collapsed earlier this month following a spectacular decline in the price of crude oil to five-year lows.
The second day of pre-Diwali Dhanteras witnessed a tepid response from shoppers on Friday as gold and silver sales have likely to be fallen by up to 35 per cent year-on-year due to high prices and COVID-19 induced financial distress, although consumers moved to online buying to make most of the festival, jewellers said. The buying was heavily restricted to light weight jewellery, coins and precious stones due to lower purchasing power and high gold rates, they said. Due to the fear of coronavirus infection, many customers who had booked in advance were taking delivery of wedding orders on Friday, while some were seen buying safely through online brands like Tanishq and Melorra.
The overall gold demand during the second quarter of 2013 stood at 1,148 tonnes, the World Gold Council Q2 Demand Trends report said.
Concern would kick in if imports stay at or over 100 tonnes a month.
The customs duty from gold imports could be approximately Rs 8,000 crore, about less than half of what was collected a year ago.
Jewellers see flat gold sales this Dhanteras
As the nation celebrates its 76th Republic Day, India's sports fraternity took to social media to share their patriotic sentiments and wishes with fans across the country on Sunday.
'Curbs will again lead to the grey market developing, undoing all the work done over the last two-and-a-half years.'
The World Gold Council recently listed Suhani Pittie as one of the top ten inventive and ingenious jewellery designers in the world. Pittie who showed at the recently concluded Lakme Fashion Week talks about how she made it.
WGC expects demand to revive in H2 on surplus monsoon rains
Gold prices are set to drop further in the domestic market, owing to the rupee's appreciation.
Huge margins, high custom duty and increasing demand among youngsters have led to exponential increase in smuggling of foreign cigarettes.
Digital gold is gold purchased online from various platforms including Paytm or Google Pay and stored in your online account.
Indian overtakes China in gold consumption.
The government was also faced with problems on its balance of payments. It took steps to conserve declining foreign exchange reserves, and began to regulate the production, supply and distribution of gold. It banned forward trading in the yellow metal in November 1962, and introduced gold bonds as well, reveals the RBI's annual report for the year ending June 1963.
Gold is seen as a preferred asset for all types of investors, even central banks.
