NEW DELHI (Scrap Monster): According to data released by the All India Gems And Jewellery Trade Federation (AIGJF), the declining gold prices have spiked up jewellery sales in the country during the month of June this year. The gold jewellery sales in the country has jumped 40% over the previous year during the first ten days in June. However, the federation cautioned about the rise in gold smuggling acts in the country.
According to Manish Jain, Vice Chairman, AIGJF, gold sales have spiked up mainly on the back of plunging gold prices. The recent relaxations on gold import norms by the RBI have pulled the premium to extremely low levels. Spot premium for the yellow metal are now in the range $20 to $25 per troy ounce over London prices. The sharp fall in premiums has brought down the domestic gold rates in the country.
The jewellery body also urged the government to cut the gold import duty from 10% to 2%. At the same time, there must be an increase in the duty for gold jewellery imports. The Federation had submitted these demands to the Union Finance Minister during their meeting last week.
Commenting on gold smuggling to India, the gold smuggled into the country during past one year has exceeded the total gold smuggled during ten years before that. The Federation noted that smuggling of gold continues to be the major challenge before the industry.