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Domestic <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> have risen by 10% on a year-to-date basis on the back of the strength in global gold prices, which have surged by 18% year-to-date, driven by robust <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword> purchases, heightened geopolitical risks, and growing expectations of a monetary policy pivot from the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword>, according to the <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="153" meta.entityid="World Gold Council">World Gold Council</keyword>. The reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has ignited a resurgence in gold demand across <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. Reports from the recently concluded India International Jewellery Show indicate a substantial increase in order bookings from retailers, particularly in preparation for the upcoming festive and wedding season. Manufacturers have noted that in some cases, orders have reached levels not seen in several years, underscoring the strong buying interest among <keyword id="21595593" type="General" weightage="20" keywordseo="jewellery-retailers" source="keywords">jewellery retailers</keyword> and consumers alike. The trend of bar and coin buying has also remained robust, with both consumers and jewellers capitalizing on the more attractive prices to stock up for future manufacturing needs. Historical analysis suggests that Indian consumer demand, encompassing jewellery and bar and coin demand, could see an additional 50 tonnes or more in the second half of 2024. This potential increase is fueled by a combination of an initial boost in consumer appetite due to the more attractive prices and a longer-term alignment of local prices with international rates. In a notable shift, domestic gold prices, which had been trading at a discount to international prices for five consecutive months, have now started trading at a premium following the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> announcement. The discount had widened significantly in July, reaching a peak of around $80 per ounce in the third week of the month, driven by subdued demand and an increased supply of gold through various preferential trade agreements and unofficial channels. However, wholesalers who had inventory purchased under the old customs duty regime began selling gold at a premium to the landed cost to mitigate their losses, further supported by increased consumer demand. While the premiums have moderated recently, from $28 per ounce to around USD 5 per ounce, this shift highlights the changing market sentiment and the impact of rising international gold prices and potential inventory valuation adjustments. The changes introduced in the Union Budget, including a reduction in the long-term investment holding period and a lower tax rate, have made gold ETFs a more attractive investment option. Data from the Association of Mutual Funds in India (AMFI) reveals that net inflows into gold ETFs in July amounted to Rs 13.4 billion (approximately USD 160 million), marking the highest monthly inflows since February 2020 and an 84% increase compared to June 2024. Despite these inflows, the total assets under management (AUM) for Indian gold ETFs grew marginally by 0.3% from the previous month, reaching Rs 345 billion ($4.1 billion). This modest increase can be attributed to the 8 % fall in domestic gold prices following the import duty reduction. Year-to-date, net inflows into Indian gold ETFs have totalled Rs 45 billion ($543 million), with total AUMs rising by 48 % from a year ago. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has continued its gold purchasing trend, although at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes--the highest monthly total in nearly two years. Year-to-date, the RBI's gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI's gold reserves have now reached a record 849 tonnes, representing 8.8% of total foreign reserves, compared to 7.5 % a year ago. In July, gold imports remained steady at $3.1 billion, maintaining the stable trend observed over the previous three months. Between April and July, imports averaged $3.2 billion, with volumes ranging between 43 and 47 tonnes during this period. The gold import bill for July 2024 was 11 % lower than the previous year, with an estimated 26% decrease in volume terms, around 47 tonnes. Despite a surge in international gold prices, domestic gold prices in India have experienced a notable decline, primarily due to the 9 % reduction in import duty announced in the Union Budget 2024-25. This policy change has led to a 6% decrease in the landed cost of gold, marking a shift in the domestic gold market dynamics.

Domestic gold prices surge 10% amid global price rally, central bank buying: World Gold Council

Mumbai, Global economic uncertainties and geopolitical tensions are likely to take <keyword id="46002" type="General" weightage="20" keywordseo="gold-prices" source="Orion">gold prices</keyword> to a new high of Rs 70,000 per 10 grams this year, making it a safe haven investment and a perfect hedge against inflation, industry body <keyword id="20036539" type="General" weightage="50" keywordseo="all-india-gem" source="keywords">All India Gem</keyword> and <keyword id="20035996" type="General" weightage="80" keywordseo="jewellery-domestic-council" source="keywords">Jewellery Domestic Council</keyword> (<keyword id="20014452" type="General" weightage="80" keywordseo="gjc" source="keywords">GJC</keyword>) said on Tuesday. "The yellow metal's appeal as a safe haven investment and a perfect hedge against inflation is likely to continue in 2024 as consumers face high commodity prices and elevated interest rates worldwide thus overheating financial markets, GJC chairman <keyword id="20036537" type="General" weightage="50" keywordseo="saiyam-mehra" source="keywords">Saiyam Mehra</keyword> said in a statement. Economic uncertainties and geopolitical tensions suggest a rise in gold prices, which emphasises gold as a vital portfolio hedge during downturns and the prices are likely to see an upsurge of USD 2,300 an ounce or Rs 70,000 per 10 grams in 2024, he said. "If economic conditions worsen, driving increased demand for defensive assets, gold prices could rise, offering a potential upside beyond all past predictions," he added. In 2023, gold outperformed other investment products as safe-haven buying triggered by the United States interest rate pause, geopolitical uncertainties, and high inflation amid a global economic slowdown, <keyword id="20036538" type="General" weightage="80" keywordseo="mehra" source="keywords">Mehra</keyword> noted. With 13 per cent returns, gold continued to be the most attractive investment option in 2023, he stated. The precious metal saw uninterrupted buying interest from investors, supported by a recent rally in the equity markets during the Christmas season. Consumers' appetite was seen throughout the year across all forms of gold products, such as physical, bonds, and paper gold. "Gold has been a timeless allure for Indian consumers following a similar trend overseas, reaching an all-time high record of Rs 64,460 per 10 grams during this year and outshined other asset classes in 2023. In the international markets, spot gold surpassed the previous record high of USD 2,081 an ounce," Mehra said. This signifies that consumers' appetite for gold is growing and with continuing the global economic uncertainty the prices will certainly catapult gold to much higher levels in 2024, he added.

Gold prices likely to reach around Rs 70,000 per 10 grams in 2024, says industry body

<div type="image" title="Save yourself the trouble of buying physical gold this Diwali, and instead, go digital with Gold ETFs!" height="900" width="1200" msid="114507055" hostid="261" sizebytes="439216" caption="&amp;lt;p&amp;gt;Save yourself the trouble of buying physical gold this Diwali, and instead, go digital with Gold ETFs!&amp;lt;/p&amp;gt;"></div> Ah, <keyword id="18712" type="General" weightage="20" keywordseo="Gold" source="Orion">gold</keyword>! The shiny metal that's been making humans lose their minds since time immemorial. And yet, from <keyword id="23657519" type="General" weightage="20" keywordseo="king-midas" source="keywords">King Midas</keyword> to our neighbourhood aunty and even our moms (and secretly dads), everyone seems to have a super soft spot for the <keyword id="6384667" type="General" weightage="20" keywordseo="Bullion" source="Orion">bullion</keyword>. But here's the kicker: right now, gold prices are breaking all records on their upward trajectory! As of today, prices of 24k carat gold have passed the Rs 80,000 mark per 10 grams. And if experts are to be believed, this train isn't stopping anytime soon! So, as shiny as gold might look, adding even a bit of its glitter as we start decking up for the festive season might not be so easy on your pockets. But let's admit it—we love our gold and can't live without it. No wonder India is the second-largest consumer of the yellow metal in the world, only behind China. Such is our fondness for the metal that the <keyword id="20195223" type="General" weightage="20" keywordseo="world-gold-council" source="keywords">World Gold Council</keyword> had to up our 2024 annual demand forecast to 850 tonnes, up from the previously estimated 750 tonnes. However, our love for gold isn't just about looking fabulously embellished and blinding people with its bling. Indians also see gold as a long-term, trusty investment, supporting our other hard-earned assets, especially when high <keyword id="22195" type="General" weightage="20" keywordseo="Inflation" source="Orion">inflation</keyword> rates pull our returns down. After all, while inflationary pressures generally weaken the purchasing power of our regular paper money, gold is built differently. When the world is buckling to inflation, gold gains value during these times. This is also why it is considered a solid hedge against inflation. With <keyword id="188" type="General" weightage="20" keywordseo="Diwali" source="Orion">Diwali</keyword> and <keyword id="4067" type="General" weightage="20" keywordseo="Dhanteras" source="Orion">Dhanteras</keyword> knocking at our doors, the inflation demon continued to bother India like a guest who refused to leave. Just last month, the Consumer Price Index (CPI) stood at 5.49%, much higher than the anticipated levels. Moreover, the diverging policy stances among central bankers worldwide, growing geopolitical tensions, tough job markets, and extreme weather events are only adding to the uncertainty. In such economically uncertain times, what should your gold strategy be this festive season? To buy or not to buy, that is the question. Well, let’s get to it. <h2><keyword id="20050894" type="General" weightage="100" keywordseo="gold-etfs" source="keywords">Gold ETFs</keyword> to the rescue</h2>See, buying physical gold jewellery is certainly a flex, but also a financial fuss. First, you pay a heavy amount to buy gold. Not to mention all those extra, hefty jewellery-making charges. And then you pay even more money to keep it safe in a bank locker, lest it get stolen. But what if we tell you that you can own pure 24k gold, minus all these frills? Welcome, Gold ETFs (Exchange Traded Funds). Simply put, gold ETFs are like the cool cousins of your traditional gold investments. Instead of stashing gold bars under your mattress like those maniac millionaires we see in Bollywood films, you can now invest and trade in gold through the stock market. It's basically buying units of an <keyword id="19930506" type="General" weightage="20" keywordseo="etf" source="keywords">ETF</keyword> on the stock exchange that directly mirror the ongoing domestic prices of gold. Generally, gold ETFs are equivalent to 99.5% pure physical gold bars, and each ETF unit denotes actual, one gram of gold. And let's face it, who would not want that golden glow in their lives? Gold ETFs have witnessed an over seven-fold surge in their AUM (assets under management) in just the last five years. From Rs 5,613.22 crore in September 2019 to Rs 39,823.50 crore in September 2024, gold ETFs seem to be in-thing. Inflows in gold ETFs have shot up by a whopping 2,695% over the last 5 years. In September 2019, gold ETFs had garnered a mere Rs 44.11 crore. Compare that to the inflows worth Rs 1,232.99 crore gold ETFs received last month. Talk about growing, or glowing popularity! In fact, in just 2024, inflows in gold ETFs have surged by nearly 88% since the beginning of this calendar year. From Rs 657.46 crore in January 2024 to Rs 1,232.99 crore in September 2024, good old gold is never out of season. <h2>So, how do these ETFs work? Should I invest in them now?</h2>All you need is a Demat account. Log into your account, choose the gold ETF scheme you want to invest in, and voila! You’re now a bullion-aire! All your gold ETF units will be stored in this account. Then, you can buy and sell gold ETFs just like you buy shares—in real-time. So, if gold prices inch upwards, which is where gold is currently going, the value of your ETF units will also rise in lockstep. Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics, says that of late, gold ETFs have been increasingly gaining popularity among investors due to the liquidity, safety and transparency they offer. "With the escalating global geopolitical tensions boosting the ‘safe-haven’ appeal of the bullion, investors are preferring to park their funds in gold ETFs as compared to investing in physical gold, as there is no hassle of storing it. The heightened activity in gold ETFs is also driven by the prospects of an imminent further interest rate cut by the <keyword id="20078761" type="General" weightage="20" keywordseo="u-s-federal-reserve" source="keywords">U.S. Federal Reserve</keyword> in the coming months,” he added. “Investors with a short- to medium-term investment horizon may consider investment through gold ETFs. A buy-on-dips strategy here may help investors capitalise on a temporary correction in prices. Also, given the current market dynamics where equities are showing mixed trends, a modest, 5-10% allocation to gold may serve as a hedge against inflation and market volatility, which may help you balance risks in an optimum manner,” Kumar noted. <h2>Wait, there is no dearth of options</h2>But if ETFs make you go WTF, there’s always digital gold. You can invest in the yellow metal without actually physically holding it for as low as Rs 1. The best part? You can buy or sell this gold 24 X7 seamlessly via multiple apps without having to pay storage costs. On your behalf, your gold is stored in insured vaults by the seller. But remember, digital gold continues to remain unregulated territory in the country, where you venture at your own risk. In 2021, market watchdog SEBI had even asked its members to desist from selling digital gold. Then there are gold mutual funds and the Sarkari SGBs, or sovereign gold bonds. While gold mutual funds invest primarily in gold ETFs, SGBs are issued by the RBI and are also a reliable substitute for holding physical gold. However, with the RBI currently putting brakes on issuing SGBs, investing in them is out of the question. Plus, you should only get your hands on SGBs if you're in for the long haul. Apart from a 2.5% p.a. interest, you don't have any yearly earnings from them. Moreover, no premature redemption is allowed before 5 years, and you'll have to wait a good 8 years to maximise your returns. <h2>Okay, tell me about returns</h2>In contrast, the seventeen gold ETF schemes currently present in the market offer an average one-year return of 29.12%. Stay with it a little longer, and you can end up with returns worth 16.93% and 13.59% over a 3- and 5-year period, respectively. If you look at it, these returns are comparable with the returns delivered by actual, physical gold. Data from Value Research indicates that gold, as a commodity, has delivered returns worth 27.24%, 16.53%, and 14.18% over a 1, 3, and 5-year period, respectively. So, worth investing, right? <h2>What are the risks?</h2>See, markets are as unpredictable as monsoons in Mumbai. One significant market correction can wash away your returns, and one sunny day or an upswing can leave you wallowing in wealth. Since your gold investments are directly linked to these markets, you should steel yourself up for some volatility. Plus, international gold prices are in dollars. So, if our rupee decides to take a nosedive, your returns might look a bit tarnished. Also, know that your ETF might not always perfectly mirror gold prices, which is also known as a tracking error. It's like expecting your Zomato-ordered food to look exactly like the picture on the menu—it's close, but not quite. Then there’s the taxation bit. The budget this year brought down the LTCG (long-term capital gains tax) on gold ETFs from the previous 20% to 12.5% (sans indexation). LTCG is what you pay if you sell your ETF units after 12 months. If you sell your gold ETF units within a year and make handsome returns, the tax you’ll have to pay will be equivalent to your income tax slab rate. <h2>Is gold just for old?</h2>A survey by fintech firm Moneyview thinks otherwise. Per their findings, over 85% of the 3,000 respondents it talked to considered gold to be a valuable asset for wealth preservation, with its intrinsic value and historical performance continuing to drive consumer confidence. Particularly, young investors in the age group of 25–40 years are also investing in gold via both physical and digital ways to build wealth for retirement and other long-term goals. So, young or old, everyone’s going for gold. So, this festive season, with gold prices going north, investing in gold can add that much-needed glitz to your financial attire. But remember, don't go overboard since gold isn't exactly a high-return-yielding asset. But whether you're a seasoned investor looking to diversify or a newbie trying to make their way in the markets, investing in gold offers you a glittering safety cushion. Just remember, while gold can make your portfolio shine, it's your smart investment decisions that truly make you golden. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified, and registered advisors for professional and personalised financial advice.

Simply put: Can investing in gold this festive season add the much-touted Midas touch to your investments?

Mumbai, <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>'s gold demand witnessed on-year decline of 3 per cent at 747.5 tonnes in 2023, and going ahead the spurt in demand could be anywhere between 800-900 tonnes, if prices hold out and are not significantly volatile, the <keyword id="20195223" type="General" weightage="20" keywordseo="world-gold-council" source="keywords">World Gold Council</keyword> said in a report. The country's total gold demand stood at 774.1 tonnes in 2022, according to the World Gold Council (<keyword id="20256712" type="General" weightage="20" keywordseo="wgc" source="keywords">WGC</keyword>) Gold Demand Trends report 2023. "India's gold demand in 2023 declined by 3 per cent to 747.5 tonnes, strongly influenced by rising gold prices. Although consumer interest remained high, it lagged trade sentiment. October's price correction during <keyword id="20023931" type="General" weightage="20" keywordseo="navratri" source="keywords">Navratri</keyword> stimulated a robust consumer response, boosting Diwali sales in November. "However, demand declined in December as gold prices resumed an upward trend, resulting in a 9 per cent drop in fourth quarter jewellery demand compared to the same period of 2022," <keyword id="20399154" type="General" weightage="20" keywordseo="wgc-regional" source="keywords">WGC Regional</keyword> CEO, India, Somasundaram PR told PTI. Price of gold was volatile throughout 2023, with the yellow metal reaching a new high of Rs 61,845 per 10 gm on May 4 in the domestic market and USD 2,083 an ounce in global markets, and this trend continued with the precious metal reaching another high of Rs 61,914 per 10 grams in November 16. Looking forward to 2024, India's gold demand should benefit from ongoing positive economic conditions and if the prices hold out are not significantly volatile there is likely to be a big spurt in demand which could be anywhere between 800-900 tonnes, he said. "The subdued demand range of 700-800 tonnes since 2019 attributable to continuous rise in prices, increase in duties, stock market outperformance, near-term elections spending impact and acceptance of elevated price levels, suggest the potential for a spurt in demand in the near future. However, any short-term impediments to higher demand could arise from another round of sharp price hikes and volatility triggered by global factors," he added. The total jewellery demand in India dropped by 6 per cent to 562.3 tonnes in 2023, compared to 600.6 tonnes in the previous year, the report stated. Meanwhile, the total gold investment demand in the country grew by 7 per cent to 185.2 tonnes, compared to 173.6 tonnes in the previous year, the WGC report said. "Bar and coin investment in India rebounded, growing by 7 per cent to 185 tonnes year-on-year. The fourth quarter demand touched 67 tonnes, 64 per cent above the five-year quarterly average. "The correction in gold prices led to some robust investment responses in third and fourth quarters, supported by increased interest from physically backed gold ETF investors, setting total holdings in Indian-listed products to a record 42 tonnes by year-end," Somasundaram said. He said that recycling was 20 per cent higher due to low and supportive higher prices but at 117 tonnes, could be considered the normative expected level. Total gold imported to India in 2023 was 780.7 tonnes, up by 20 per cent compared to 650.7 tonnes in 2022, according to the report. "Net gold imports surged by 20 per cent to 780.7 tonnes in 2023, primarily due to substantial inventory building by the trade. "In 2024, gold imports are likely to be higher than the demand. The various Free Trade Agreements (FTAs) India has inked with many countries are expected to boost gold imports further this year," noted Somasundaram.

India's gold demand dips 3% in 2023 on high prices: World Gold Council

Global <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> demand declined by 13 per cent year-on-year to 1,080.8 tonnes during the January-March quarter of this year, mainly due to outflows from European-listed <keyword id="982068" type="General" weightage="20" keywordseo="exchange-traded-fund" source="Orion">exchange-traded fund</keyword> (<keyword id="6357062" type="General" weightage="20" keywordseo="etf" source="Orion">ETF</keyword>) products, according to the World Gold Council (<keyword id="142987" type="General" weightage="20" keywordseo="wgc" source="Orion">WGC</keyword>). The total gold demand stood at 1,238.5 tonnes during the first quarter of 2022, WGC's Gold Demand Trends Q1 2023 stated. Holdings of global gold ETFs fell during Q1, with 29 tonnes of outflows in January and February equivalent to a USD 1.5 billion in outflow, the report said, adding that the majority of outflows came from the European-listed products. However, North American-listed ETFs, as well as those listed in other regions, witnessed a recovery in inflows during the first quarter of 2023, it added. "The mixed picture for quarter one highlights how gold's diverse sources of demand underpin its role and performance as a global asset," WGC Senior Markets Analyst Louise Street said. "Growth in some regions offset weakness in others as different economic forces and demand drivers played out in the global gold market. One commonality was that different types of investors looked to gold as a store of value in uncertain times," Street added. She, however, noted that against the backdrop of turmoil in the banking sector, ongoing geopolitical tensions and a challenging economic environment, gold's role as a safe haven asset has come to the fore. Moreover, it is likely that investment demand will grow this year, especially with waning headwinds from the strong US dollar and interest rate hikes, she said. She further noted that positive demand for gold ETFs has continued in the second quarter so far, and the looming threat of developed market recession may be the trigger for inflows to accelerate later in the year. "Central bank buying is likely to remain strong and will be a cornerstone of demand throughout 2023, even if at lower levels than the record highs seen last year," she added. Central banks have helped boost demand adding 228 tonnes to global reserves, a quarter-one record high in this data series, compared to 83 tonnes in the same period last year, said the report. "<keyword id="17331412" type="General" weightage="20" keywordseo="central-banks-of-singapore" source="Orion">Central banks of Singapore</keyword>, China and Turkey were the top buyers, while the Reserve Bank of India also added 7 tonnes to its reserves during the January-March quarter," WGC Regional CEO, India, Somasundaram PR told PTI. On the supply side, there was a slight increase in the first quarter to 1,174 tonnes, with marginal 2 per cent growth in mine production and a 5 per cent uptick in recycling driven by the higher gold price. The report further noted that bar and coin investment strengthened 5 per cent year-on-year to 302.4 tonnes compared to 287.7 tonnes in the same period of 2022, although there were notable shifts in key markets. The US bar and coin demand hit 32 tonnes in the first quarter, the highest quarterly level since 2010, and was driven primarily by recession fears and a flight to safety amid the banking turmoil, it said. This increase helped offset weakness in Europe and particularly Germany where there was a 73 per cent drop in demand, they stated. Meanwhile, jewellery performance was relatively flat in the first quarter at 477.9 tonnes compared to 475.3 tonnes in the corresponding period of 2022, the WGC report said. The report stated that Chinese demand regained ground, reaching 198 tonnes in its first quarter of unfettered consumer activity since lockdown restrictions were lifted. "Demand in China went up by 16 per cent due to the lifting of restrictions from the lockdown imposed to control the spread of Covid-19 and Chinese New Year," Somasundaram said. Meanwhile, demand in India declined as consumption fell by 17 per cent year-on-year to 78 tonnes during January-March 2023, mainly on account of a sharp increase in domestic gold prices to over Rs 60,000 per 10 grams and continued volatility in price. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-enterprises-paytm-tvs-hero-motocorp-britannia-among-stocks-to-watch/articleshow/100001235.cms">Sensex, Nifty50 slip amid weak global cues: HDFC twins tumble over 5%</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a>

Gold demand dips 13% globally in Jan-Mar quarter says World Gold Council

<ul class="summary-list"><li>Gold jewelry demand looks set to weaken for the rest of 2022, said the World Gold Council. </li><li>A slowdown in the global economy is the largest risk to demand, said the 32-member group in its latest trends report. </li></ul>Demand for gold jewelry will be sluggish in the second half of 2022, according to the World Gold Council, which pointed to hurdles in two of the biggest markets — China and India. "The largest risk to jewellery comes from potentially weaker economic growth," the council said in a <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2022/outlook">report published late Wednesday</a>. It sees "notable downside risk" in the gold jewelry market for the rest of this year. <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2022/17134">In April</a>, the council projected flat demand in 2022.The more downbeat view from the council, whose membership is comprised of 32 gold mining companies, arrived shortly before US government data Thursday suggested the <a href="https://www.businessinsider.com/gdp-q2-economic-growth-recession-inflation-hiring-us-recovery-progress-2022-7">world's largest economy has entered a technical recession</a>. <a href="https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022">The International Monetary Fund</a> also this week cut its 2022 global GDP growth projection to 3.2% from 3.6%. Flash points in gold demand moving forward this year lie in China and India, the World Gold Council said. "China's lockdowns have dented demand and a recovery will likely be slow due to the continued strict zero-COVID policy and stresses in the domestic real estate sector," it said.China's gold jewelry demand dropped 29% in the second quarter to 103 tonnes. But some relief may be found in consumption stimulus measures and pent-up wedding demand, the council said. The Chinese government on Thursday reportedly said it will work on landing the best possible result for economic growth in 2022, indicating leaders in the world's second-largest economy will miss a target of 5.5%. The economy expanded by a relatively slow rate of 2.5% in the first half of 2022. And while gold demand in India climbed 49% to 140 tonnes last quarter on robust wedding and festival sales, the report noted headwinds there too. In particular, pressure in India should stem from an increase in the country's gold import duty and the possibility of additional curbs on gold buying to stem further depreciation of India's currency, the rupee. India this month raised its gold import duty by 4.25% to 18.45%. Overall jewelry consumption in the second quarter was 4% higher at 453 tonnes as growth in India and the Middle East outweighed declines in China and Russia, the group said. <a href="https://markets.businessinsider.com/commodities/gold-price?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">Gold</a> futures during Thursday's session rose by nearly 2% to $1,752 an ounce. Prices have declined by more than 4% so far this year.<div type="image" title="A chart shows quarterly jewelry demand below pre-pandemic levels." height="972" width="1460" msid="93195649" hostid="261" sizebytes="48402"></div>

The gold market should see slower jewelry demand through end of 2022 amid deteriorating global economic growth, says World Gold Council

Mumbai, Jan 13 () The gem and jewellery industry has sought reduction in customs duty on gold to four per cent, withdrawal of tax collected at source (TCS), cut in <keyword id="6357502" type="UNKNOWN" weightage="20" keywordseo="Import-Duty">import duty</keyword> on polished precious and semi-precious gemstones, in the upcoming Union <keyword id="6358021" type="COMPANY" weightage="20" keywordseo="budget">Budget</keyword> 2021-22. All India Gem and Jewellery Domestic Council (GJC) Chairman Ashish Pethe told , "We urge the government to reduce the customs duty to 4 per cent from the current 12.5 per cent. If the tax rate is not kept at this level, it will encourage smuggling and encourage people to do unorganised business." He further urged the government to keep goods falling under HSN-71 (Harmonised System Nomenclature) out of the purview of TCS provisions as the amount of funds blocked in TCS is 6.67 times more than the ability to pay income tax, resulting in blockage of funds. Pethe also said the facility of equated-montly instalment (EMI) should be extended to the gems and jewellery industry and to increase the cash purchase limit to Rs 1 lakh from the current Rs 10,000. Gems and Jewellery Export Promotion Council (<keyword id="110243" type="PERSON" weightage="20" keywordseo="GJEPC">GJEPC</keyword>) Chairman Colin Shah urged the government to reduce import duty on cut and polished precious and semi-precious gemstones to 2.5 per cent, from the current 7.5 per cent. In its Budget recommendations, GJEPC has also proposed a hike in import duty on synthetic cut and polished stones to 25 per cent from 5 per cent. Shah said GJEPC has also proposed amendment in taxation provisions to allow sale of rough diamonds in special notified zone in Mumbai. Malabar Group Chairman MP Ahammed has urged the government that tax rate, including import duty on gold and GST, should be reduced to 7 per cent. Ahammed has also said the government should create an enabling environment for the jewellery retail trade to introduce MRP pricing in jewellery without any pricing break-up in terms of GST or other taxes. Currently, gold attracts 12.5 per cent import duty and 3 per cent GST and total duty and GST implication works out at 15.5 per cent. "Such high taxes have led to large-scale smuggling and tax evasion. Therefore, reducing import duty-GST implication to 7 per cent is an effective measure to prevent those industry malpractices," he added. Although the tax and duty implication is 15.5 per cent on gold, the actual implication comes to around 20 per cent after adding the mining royalties. The gold and diamond trade together accounts for 7.5 per cent of the country's GDP and 14 per cent of the country's total exports. About 60 lakh people are employed in this sector. Therefore, Ahammed noted that the government should take steps to facilitate comprehensive development of the grade trade sector so that it can continue to play a pivotal role in the growth of the economy. PNG Jewellers Chairman and Managing Director Saurabh Gadgil opined that 2020-21 has had a negative impact on the industry over all. "While jewellers are on track to recover from the impact of the pandemic and a muted wedding season, we are hopeful that the Budget 2021-22 will look at the jewellery industry favourably and roll out many SOPs and important policy changes that can help revive the industry in the next one year," he said. It is critical that the government also look at policies that encourage banks to kick-start lending once again to the jewellery sector, which will help businesses across the board to maintain liquidity and ensure survival and success, he pointed out. From the consumer perspective, he said gold should be deemed as an asset class like the mutual funds, allowing an increase in consumer investment confidence as well as the availability of facilities like EMI schemes to invest in gold products. "Setting up of a spot exchange, announced in the 2018 Budget on an immediate basis, will ensure consistency in pricing of gold across the country. This will boost consumer confidence and help people sell their gold at daily transparent prices," he added. SM HRS

Budget 2021: Gems and jewellery industry seeks reduction of import duty to 4%

Kolkata, Mar 22 () The indigenous gem and jewellerysector in the country has come to a "standstill" amid thecoronavirus pandemic and is in immediate need of reliefmeasures from the government, an industry body said. With virtually no footfalls, many jewellers mighthave to even shut down their shops, the All India Gem &amp;Jewellery Domestic Council said."Considering the crisis situation, the domestic gem &amp;jewellery sector seeks immediate relief measures to enable thetrade to function smoothly," chairman of the council AnanthaPadmanabhan said in a statement.March, being the last month of the financial year,there are also many due dates of payments for businesses inthe sector, it said."We have sent a recommendation to the prime ministerstating our concern... and we have received a prompt andfavourable response from the PMO," Padmanabhan said.The council also urged the government for deferringthe GST return and extending the time limit for filing it."We have also sought reduction in customs duty to 4per cent. If rate of tax is not kept at this level, it shallencourage smuggling and unorganised business," the statementadded. DCRBT RBT

Coronavirus: Gem & jewellery sector seeks prompt govt relief

Mumbai, Mar 18 () Following the coronavirus outbreak, the gems and jewellery sector in the country has come to a standstill with retailers managing to do only 20-25 per cent business due to fewer footfalls amid fear of the virus' spread, according to an industry body. "There is virtually no footfalls in jewellery stores and retailers are doing only 20-25 per cent business across the country," All India Gem And Jewellery Domestic Council chairman Anantha Padmanaban told here. He further noted that there is panic among people due to the outbreak of coronavirus (COVID-19). Besides, as a precautionary measure the government has shut malls, theatres and other crowded places. People are mostly venturing out to buy essential commodities. Meanwhile, the number of deaths around the world linked to the new coronavirus has reached nearly 8,000. In India, the number of novel coronavirus cases has risen to 147 on Wednesday, with 10 fresh cases reported from various parts of the country, according to the Health Ministry. Padmanaban further noted that considering this is the last month of this fiscal there is mounting pressure to meet all the tax-related deadlines. "There are a lot of tax related work, including advance tax, GST, demonetisation note to be submitted to the Income Tax department, which is adding up to the lack of business," he said. According to Lala Jugal Kishore Jewellers Director Tanya Rastogi "Indian gems and jewellery industry is predominantly wedding driven. But due to coronavirus most such events are being cancelled. That has driven the wedding shopping to a halt." Kumar Jain, owner of the Umedmal Tilokchand (UT) Zaveri jewellery store said the Zaveri Bazar in Mumbai has come to a standstill despite the ongoing wedding season. "There are marriage dates till July, and the business was picking up for the season. However, after the outbreak of COVID-19 things have come to a standstill and there are almost no footfalls in retail stores," he said. Things are expected to return to normal by the end of March, jewellers believe. Anmol Jewellers founder Ishu Datwani said, there has been a 60-70 per cent drop in footfalls and business is slow due to the coronavirus pandemic. "We are taking all necessary precautions and safety measures to ensure everyone's safety and well-being," he added. SM DRRDRR

Jewellery industry lose shine as corona scare grips people

There is a bad news for those who love the yellow metal. The <keyword id="18712" type="ENTERTAINMENT" weightage="80" keywordseo="Gold">gold</keyword> trade would be affected in the country as result of increased competition due to duty free jewellery imports from <keyword id="8692" type="COUNTRY" weightage="80" keywordseo="Indonesia">Indonesia</keyword>. At the same time, there would be fall in rural demand for the precious metal from June 1 when PAN card would be required to purchase gold jewellery worth over Rs 1 lakh. 
 
According to experts, jewellery imports from Indonesia are "completely detrimental to the interest of the gold trade" in the country. On the other hand, as agricultural income doesn't come under the tax net, many farmers don't have PAN cards. This would be a blow to the trade as rural India accounts for 60% of the total gold consumption of 811 tonnes in the country. 
 Trade insiders say gold jewellery imported from Indonesia under the free trade agreement (FTA) is affecting the domestic business that has to pay an import duty for gold. "Gold attracts an import duty of 10%, which makes the landed price of gold costlier. And automatically our jewellery prices go up," Manish Jain, chairman at <keyword id="2422472" type="UNKNOWN" weightage="80" keywordseo="Gem-Jewellery-Trade-Federation">Gem &amp; Jewellery Trade Federation</keyword> (GJF), told the Economic Times. 
 
The issue has been brought to the notice of the commerce ministry," he said. 
 The development comes at a time when the domestic demand is not picking up. Jewellers fear the market condition may get worse as buyers will soon have to show their permanent account number (PAN) card issued by the <keyword id="6354751" type="COMPANY" weightage="80" keywordseo="Income-Tax">income tax</keyword> department if they purchase jewellery over Rs 1 lakh. 
 
"The move to make PAN card mandatory for high-value transactions will surely impact retail sales. Rural demand of gold will be hard hit," said Bachhraj Bamalwa, director at GJF. 
 
And branded jewellers are increasingly penetrating to rural markets. Samir Sagar, director of Mumbai-based Manubhai Jewellers, said rural customers save for years to buy gold for weddings. "Now, if jewellers ask for PAN cards, they will get scared," he said. 
 The PAN mandate may also impact demand from housewives who buy non-marriage gold jewellery. "Usually, they do not have PAN cards, and even if they have, they do not want to carry these cards to jewellery outlets," Sagar said. Jain of GJF said representatives of the federation have met <keyword id="6355261" type="POSITION" weightage="60" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> to request him to raise the limit to Rs 5 lakh worth of gold jewellery for furnishing PAN details. 
 
"He has assured us that some positive step will be taken before June 1," he said. 
 This year the <keyword id="113718" type="ORGANIZATION" weightage="80" keywordseo="World-Gold-Council">World Gold Council</keyword> has kept a consumption target of 900-1,000 tonnes for India. 
 
(Image: Indiatimes)

Indonesian imports, PAN submission to affect gold trade in India

Mumbai, Feb 13 () The gems and jewellery industry on Thursday urged the government to reduce the import duty on precious metals, cut and polished diamonds and gemstones and amend taxation laws to give domestic traders a level playing field in the global market. "We have been pursuing with the government constantly with few concerns which require immediate attention, like reduction in import duty on precious metals -- gold, silver, platinum to 4 per cent from 12.5 per cent. Reduce import duty on cut and polished diamonds and gemstones from 7.5 per cent to 2.5 per cent," Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pramod Kumar Agrawal said. Speaking at the 13th edition of the India International Jewellery Show (IIJS), he said the industry has also been urging the government for amendment in taxation laws enabling sale of rough diamonds in Special Notified Zone (SNZ), Mumbai. "This is very important to give a level playing field to our traders in the global market," he added. The four-day IIJS, which commenced from Thursday, is hosting more than 700 exhibitors and is expected to attract over 18,000 visitors from India and 55 countries. Agrawal also announced that GJEPC is coming up with a new show in Jaipur in Rajasthan -- India Gem and Jewellery Show -- to be held from April 1-3, especially for international buyers. SM ABMABM

Jewellery industry urges govt to reduce import duty on gold, polished diamonds

Mumbai, Apr 26 () The jewellery industry, which has come to a standstill due to the lockdown following the COVID-19 pandemic, is expecting complete sales washout on the day of Akshaya Tritiya on Sunday as compared to last year, even as many retailers are doling out innovative offers to attract customers. "This year Akshaya Tritiya has fallen within the lockdown 2.0, which will result in complete shutdown of jewellery shops. Whatever sales will take place will be on the digital platform only," All India Gems and Jewellery Domestic Council Chairman Anantha Padmanabhan told here. "We are expecting 97-98 per cent decline in business this year on the day of the festival compared to last year," he added. He said jewellers have come out with innovative offers to attract customers for digital purchases, including locking of prices, gold ownership certificates, among others. "Any physical delivery or purchase will happen after the lockdown. We expect the industry will gradually limp back to normalcy with May and June being extremely slow. We expect the demand to peak during Diwali," he added. Akshaya Tritiya, also known as Akha Teej, is an annual spring time festival considered auspicious in many regions (especially in the south and the west) for beginning new ventures, marriages, expensive investments such as in gold. PNG Jewellers Chairman and Managing Director Saurabh Gadgil said that for the first time ever, gold buying on Akshaya Tritiya will be completely online. "The turnout will not be like last year and jewellers are doing business by offering e-vouchers, e-certificates as physical buying and delivery at present is not possible due to the lockdown," he said. Jewellers are also offering a price-lock as gold is ruling at around Rs 48,000 per 10 grams, and will go up further as stocks will dwindle due to absence of imports on account of lockdown. Kalyan Jewellers Chairman and Managing Director T S Kalyanaraman said this year's sales cannot be compared to regular sales during Akshaya Tritiya. Unlike in the past years, Kalyan Jewellers does not have a full-fledged Akshaya Tritiya campaign this year, he said. "Over the past 25 odd years, Akshaya Tritiya has always been about buying gold at the showroom. However, this year, owing to a change in status quo with the lockdown, we have launched the 'Gold Ownership Certificate' to keep the annual gold purchase tradition going," he added. However, considering the limited time since the announcement of Kalyan Jeweller's Akshaya Tritiya offering and given the current circumstances, the company is expecting to clock about 10 per cent of its usual Akshaya Tritiya sales this year, he said. SM RVKRVK

Jewellery sector expects sales washout on Akshaya Tritiya; COVID-19 forces jewellers to go digital

China has cut a controversial tax on personal items bought overseas, ranging from iPads to books, in an effort to boost consumer confidence. The government will slash the "tax on baggage and articles accompanying incoming passengers and personal postal articles", a three-in-one tax consisting of value-added tax, consumption tax and import duties on April 9, according to a notice posted online by the Ministry of Finance on Monday. The tax rate on products including computers, foodstuffs, gold and silverware, furniture and medicines will be lowered to 13 per cent from 15 per cent. The rate for commodities including textiles, electric appliances and bicycles will be cut to 20 per cent from 25 per cent, according to the statement. The tax rate for wine, cigarettes, jewellery, golf equipment, luxury watches and high-grade cosmetics will be kept at 50 per cent. This is the second round of tax cuts on consumer products bought overseas in six months, after Beijing initially lowered the rate on November 1 2018. The last round of tax cuts saw the tax on wine and cigarettes cut from 60 per cent to 50 per cent, while the tax rate on textiles and home appliances was slashed from 30 per cent to 25 per cent The decision was announced by Premier Li Keqiang at a routine State Council meeting last week, according to a statement on the government's website, which also said that the cut is designed to boost imports and consumer confidence. "For those products that are used by the general public, we must effectively reduce the customs tax rate," Li said in the statement. "The relevant departments will further study how to lower the price of necessary imports for the country." Hong Hao, head of research at Bank of Communications International, said that while the cut will help boost consumption, it will not provide a massive lift to Chinese consumer confidence, which has been dampened by the <a href="https://www.scmp.com/economy/china-economy/article/3004961/us-says-theres-still-significant-work-be-done-trade-talks" target="_self">US-China trade war</a> and a <a href="https://www.scmp.com/economy/china-economy/article/2188625/china-lowers-2019-gdp-growth-target-6-65-cent-range" target="_self">sluggish domestic economy</a>. "Two percentage points [cut] will not make a lot of difference," said Hong, referring to the small tax cut on some products. "It is a difficult situation now [for consumption]. Perhaps a recovery in the housing market and a rebound in the stock market would really boost spending." The tax has proven controversial among individual travellers since it was implemented in 2010. It also caused friction among government departments. At the time, the Ministry of Commerce issued discouraging correspondence to China's customs agency, local media reported. The tax also poses a threat to the business model of the <a href="https://www.scmp.com/economy/china-economy/article/2174570/chinas-e-commerce-consumers-given-more-duty-free-spending" target="_self">Chinese army of</a> <a href="https://www.scmp.com/economy/china-economy/article/2174570/chinas-e-commerce-consumers-given-more-duty-free-spending" target="_self">daigou</a> , cross-border shoppers who purchase goods cheaper overseas and bring them back to China, via personal luggage or postal services, to be sold at a profit. However, the cut comes as analysts grow increasingly concerned that consumption and trade are the weak points in the Chinese economy. 'There's a pickup in production but they need to get people out buying and consuming," said Banny Lam, head of research at <keyword id="346068" type="COMPANY" weightage="20" keywordseo="China-Everbright-Bank">China Everbright Bank</keyword> International Investment, referring to the pick up in the nation's manufacturing sector in March. The official purchasing managers index for the month jumped to 50.5, compared to 49.2 in February. A reading above 50 indicates growth from the previous month. Beijing has declared that it is embarking on the "<a href="https://www.scmp.com/economy/china-economy/article/3002364/chinas-unprecedented-and-sufficient-tax-cut-still-does-not-do" target="_self">biggest tax cut</a> campaign in its history" to <a href="https://www.scmp.com/economy/china-economy/article/3005218/china-pledges-remove-unreasonable-barriers-and-restrictions" target="_self">cushion the impact</a> of slowing domestic demand and a trade war with the United States. According to Premier Li's work report released last month, the overall tax reduction package, including the cut to the social contribution fees, will be worth 2 trillion yuan this year, equivalent to 2.1 per cent of China's <keyword id="6354971" type="DEFINITION" weightage="20" keywordseo="gross-domestic-product">gross domestic product</keyword>. This article originally appeared on the <a href="http://www.scmp.com">South China Morning Post (SCMP)</a>, the leading news media reporting on China and Asia. For more SCMP stories, please download our <a href="https://go.onelink.me/3586748601?pid=3rdpartycontentexchange">mobile app</a>, follow us on <a href="https://twitter.com/scmpnews">Twitter</a>, and like us on <a href="https://www.facebook.com/scmp">Facebook</a>. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

You Searched For "jewellery domestic council" and got 13 results

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The gold market should see slower jewelry demand through end of 2022 amid deteriorating global economic growth, says World Gold Council

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Budget 2021: Gems and jewellery industry seeks reduction of import duty to 4%

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Jewellery industry urges govt to reduce import duty on gold, polished diamonds

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China cuts tax on personal items bought overseas in move to boost consumption

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