Hyderabad: The announcement in the Union Budget to cut customs duties on gold and silver from 15 per cent to six, and on platinum from 15.4 per cent to 6.4%, to boost domestic consumption is being welcomed by both manufacturers and consumers. The bullion market has also predicted an uptick in physical demand.
“This announcement is a welcome step for the bullion industry. Consumers would now be able to buy at 9 per cent cheaper rate, boosting physical demand. MCX gold prices have fallen by `4,000 from `73,000 to `69,000 as a knee-jerk reaction. They are expected to fall more up to around `67,000 per 10 grams as per the international pegged price," said Sachin Kothari, director, Augmont - Gold For All
"It is a very effective move. The immediate effect of it will be seen in consumers spending on these metals. The rates, for the past six-eight months, have been high. Hence, the present announcement comes as a relief. This will also stabilise the rates for a while. The international market movement is also touted to bring a relief of about $30-$40, which will further reduce the prices," said Neerav Challa, head, merchandise, of PMJ Jewels.
He added that it would also benefit sellers with increase in volume of sales. With the wedding season coming ahead, consumers were delighted with the news. “My daughter’s wedding is in November. I have been planning to buy some jewellery for her. The price reduction news has brought great relief,” said Priyanka Kohli, a homemaker.
“How much will it affect the sales is too early to say but it will bring positive developments,” says Rakesh Tiruveedhula, director, Narayani Jewellers, also looking forward to the wedding season.
“This is the best time to invest in gold. Indians always consider gold a safe investment. Prices will surely rebound, though,” says Srinivas Chengali, a businessman.
