India witnessed gold discounts from various jewelry houses across the country in the past two months due to the sluggish jewelry demand in the country in spite of the rise in its prices in the global market.
The purchase of gold in other major Asian markets has improved gradually.
In India, dealers are offering a great discount on the prevailing domestic prices in India. The domestic price in India also includes an import duty of 10 percent.
Off lately, the showrooms in India is seeing less footfalls over the last few weeks, which has led the retailers to offer the discount on the ornamental metal.
The gold prices are improving on a day-to-day basis in the overseas market, but due to the depreciating rupee, the value of gold in the local market is still elevated.
The rupee has fallen by more than 6 percent during 2018, it has declined to the lowest level since the last 16 months.
In the Indian market, the gold futures were trading at Rs 31,102 for 10 grams, up by 0.40% on May 18, 2018, compared with the previous close.
Local jewelers apart from the branded jewelers are offering incentives to the customers who purchase through cashless means by using debit and credit cards, demand drafts and cheques and the payment modes which includes RTGS and NEFT as the buyers in India are gradually adapting to dwindle cash purchase in the wake of demonetization.
For example, Tanishq is offering a scheme under the name - Tanishq Golden Harvest wherein the customer has to pay for 10 months and after the payment of 10th-month installment amount, the customer will offer the discount which ranges from 55 percent to 75 percent of the first installment. The scheme will close within a period of 421 days from the date of opening the account.
Gold is considered as one of the easiest forms of liquid money. It is easy to liquidate gold in order to meet the monetary demand and hence most of the people in India prefer to invest in gold over any other form of investment.