Gold in the Indian economy
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==2014 (forecast)== | ==2014 (forecast)== | ||
"In 2014, market estimation of gold demand is between 900-1,000 tonnes," he added. | "In 2014, market estimation of gold demand is between 900-1,000 tonnes," he added. | ||
| − | + | = Gold smuggling= | |
| + | ''' 26-fold jump in gold smuggling at IGI ''' | ||
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| + | '' Data Reveals 85 Kilos Seized This Year Alone '' | ||
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| + | Suhas Munshi TNN | ||
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| + | [http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=CAP/2014/02/24&PageLabel=3&EntityId=Ar00300&ViewMode=HTML The Times of India] | ||
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[[File: gold.jpg||frame|500px]] | [[File: gold.jpg||frame|500px]] | ||
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"However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of between 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range," he said. | "However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of between 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range," he said. | ||
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| + | Gold smuggling at Delhi's IGI airport alone in 2013-4 is up 26 times from previous years with 177.6kg of the yellow metal being intercepted at the airport this financial year, according to information obtained via an RTI plea and official data. | ||
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| + | Nearly 85kg gold was seized by the customs department between April 2013 and Feb 2014. In all of 2012-13, only 6.8kg of gold was seized . | ||
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| + | The official said gold seizures have skyrocketed in Jan-Feb 2014. Officials have been linking the rise in gold smuggling to hike in import duties over the past two years. In 2010-11, import duty on gold was Rs 300 per 10gm. No case of smuggling was detected. In 2011-12, when import duty was hiked by 2%, 2kg gold was seized. In 2012-13 the duty was hiked twice and 6.82kg gold was intercepted while in 2013-14 duty was hiked twice and recoveries jumped almost 26-fold. | ||
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| + | In December 2013, finance ministry admitted gold smuggling has risen due to hike in import duty and fluctuation in global prices. “Increase in smuggling may be partly attributed to fluctuation in gold prices and duty rates,” minister of state for finance JD Seelam said. | ||
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| + | Officials say the scenario has changed fast. While people of only a particular gender and ethnicity earlier used to smuggle gold, profiles of smugglers and modes of smuggling have altered. “They change faces and modus operandi to fool the customs and security,” says a senior department official. | ||
Revision as of 06:31, 24 February 2014
This is a collection of articles archived for the excellence of their content. Readers will be able to edit existing articles and post new articles directly |
Contents |
Demand for gold
India's gold demand up 13% at 975 tonnes in 2013: Report
PTI | Feb 18, 2014
2012
Gold demand in the country was 864 tonnes according to data given in WGC 'Gold Demand Trends 2013' report.
2013
India's gold demand remained buoyant and rose by 13% to 975 tonnes compared to 2012, despite government putting in several restrictions to curb imports, according to a World Gold Council report.
"Demand in the second half was lower due to the effect of the supply curbs introduced in that period, but, equally, it was due to households having met a large part of their annual gold requirements in the first half, using the price drop in April as a buying opportunity," WGC Managing Director India Somasundaram P R told PTI.
The total jewellery demand in the country in 2013 was up by 11% at 612.7 tonne valued at Rs 1,61,750.6 crore compared to 552 tonne valued at Rs 1,58,359.1 crore in 2012.
The total investment demand for 2013, was up by 16% at 362.1 tonnes from 312.2 tonnes in 2012.
In value terms, gold investment demand rose by six% at Rs 95,460.8 crore against Rs 90,184.6 crore in 2012.
Recycled gold, however, declined by 10.79% to 100.8 tonnes in 2013, compared to 113 tonnes in 2012.
The latter half of 2013, Somasundaram said, has seen intense grey market activity.
2014 (forecast)
"In 2014, market estimation of gold demand is between 900-1,000 tonnes," he added.
Gold smuggling
26-fold jump in gold smuggling at IGI
Data Reveals 85 Kilos Seized This Year Alone
Suhas Munshi TNN
Estimates of the extent of gold smuggling in India vary widely, market analysts have suggested it could have added between 20-30 tonnes per month, the report pointed out.
"However, our estimation, based on our own analysis of the market, is that these unofficial flows may be considerably higher. We have previously been on record with our estimate of between 150-200 for 2013, and we feel that the total for 2013, was closer to the top-end of this range," he said.
Gold smuggling at Delhi's IGI airport alone in 2013-4 is up 26 times from previous years with 177.6kg of the yellow metal being intercepted at the airport this financial year, according to information obtained via an RTI plea and official data.
Nearly 85kg gold was seized by the customs department between April 2013 and Feb 2014. In all of 2012-13, only 6.8kg of gold was seized .
The official said gold seizures have skyrocketed in Jan-Feb 2014. Officials have been linking the rise in gold smuggling to hike in import duties over the past two years. In 2010-11, import duty on gold was Rs 300 per 10gm. No case of smuggling was detected. In 2011-12, when import duty was hiked by 2%, 2kg gold was seized. In 2012-13 the duty was hiked twice and 6.82kg gold was intercepted while in 2013-14 duty was hiked twice and recoveries jumped almost 26-fold.
In December 2013, finance ministry admitted gold smuggling has risen due to hike in import duty and fluctuation in global prices. “Increase in smuggling may be partly attributed to fluctuation in gold prices and duty rates,” minister of state for finance JD Seelam said.
Officials say the scenario has changed fast. While people of only a particular gender and ethnicity earlier used to smuggle gold, profiles of smugglers and modes of smuggling have altered. “They change faces and modus operandi to fool the customs and security,” says a senior department official.
