Jewellers temporarily lift ban on sale of gold bars and coins

Updated: Thursday, October 17, 2013, 15:42 [IST]

During the ongoing festive season, jewellers have done away with the ban on selling of gold coins and gold bars. In this effect, one of the board member of All-India Gems and Jewellery Trade Federation was quoted as saying "Gold coins are not bought for investment but are rather seen as shagun and given as gifts. So we have decided to temporarily lift the ban on sale of gold coins for Dhanteras and Diwali".

The ban imposed in June this year was to curb the ballooning curb account deficit. Also, different entities involved in the supply chain including manufacturers, wholesalers, retailers and exporters who supported the government during the economic stress assert that the time is right and they can again begin selling gold coins and gold bars.

Further, Finance Ministryas reported to The Indian Express who views the current festive season to result in higher demand for gold will keep an eye on any hike in gold demand . However, the restriction put on the PSU banks in lieu of the same is likely to prevail and is unlikely to be annulled anytime soon.

So, the increase in import duty on gold imports together with other restrictions that curbed the demand for the precious yellow metal is likely to witness a reverse trend in the wake of ongoing festive and marriage season. For the Q3 of the current fiscal year a rise in the demand to the tune of 15% reaching 300 tonnes is anticipated by the World Gold Council.

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