| Date: |
03-02-2016 |
| Subject: |
No takers for gold coins, bars as market sees 2-4% duty cut |
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KOLKATA: Investment demand for gold coins and bars has failed to pick up in India even as prices appear to be on an upward curve, having increased 6% since the beginning of the year to about Rs 26,950 per 10 gram.
Bachhraj Bamalwa, director of All India Gems & Jewellery Trade Federation told ET that investors who had bought gold at Rs 31,000-32,000 per 10 gm have not been able to liquidate their holdings since gold did not regain that level.
There is a buzz in the market that the government may reduce import duty on gold by 2-4%, which may be one reason why investors are holding back, he said. Traders are dumping gold in market as they are expecting 2-4% import duty cut in budget that will lead to market price quoting at a discount. Mukesh Kothari, director at RiddiSiddhi Bullions said investors had invested in gold coins and bars when prices had fallen to Rs 25,500 in December.
"If prices fall again then investors will return," he said. India imports 950-1,000 tonnes of gold a year to meet its domestic demand.
The prices have risen this month mainly due to a weak rupee. Internationally, gold prices have not appreciated much to bring back the sheen to the precious metal the world over.
Source : economictimes.indiatimes.com
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