The second biggest importer of gold plans to try and cut its trade deficit by making the importation of gold less attractive. "'Officials from the RBI (Reserve Bank of India) and the finance ministry met on Thursday to review the country's gold import policy but no decision was taken." So this could just be speculation. They already have a 10% import duty on gold, However in September last year this duty was at 15% so it could just be a return to this figure? This tariff has helped develop a lucrative smuggling industry with ''an estimated 700kg of gold is smuggled into India every day.'' "Sometimes gold is melted into seed-shaped chips and hidden in dates from Dubai, or ground into granules and mixed with other metals to look like ore. The metal is also being converted into gold belt buckles and torch batteries.'' Source: http://www.bbc.com/news/world-asia-india-26511425 Hopefully the next big free trade agreement which will be with India (talks have only just started) will involve Australian gold. http://in.reuters.com/article/2014/11/17/australia-india-trade-idINKCN0J12DX20141117 More info and Sources http://in.reuters.com/article/2014/11/18/india-gold-imports-idINKCN0J20D720141118 http://profit.ndtv.com/news/economy...i-goverment-in-talks-to-increase-curbs-698842
they've tried all sorts of things and it hasn't really soured their appetites in the past. The defecit issue is real but I think this is revenue raising move rather than a genuine attempt to seriously decrease imports. I have some Indian friends who talked about coming back from holidays abroad with every member of the family draped in plain gold jewelry, little children with big 18c gangster necklaces and bracelets. Whatever reductions might be achieved are likely to be offset by rising wages. Possibly might even see an increase in consumption if the economy keeps on keeping on.
Good point kind of like taxing cigarettes. I wonder if we could see a short surge in demand before the duty is raised?
Or how about just stop selling gold at a certain point... Trade body asks members to curb sales of gold coins and bars
What better way for the scheming Indian government to convince the scheming Indian population to buy more gold than to outlaw the buying of gold!
