Could India’s physical gold market, which remained at a near standstill on continued industrial action this week, be set to reopen? That is the understanding of at least some senior level sources this week in the country.

There was a growing belief — or perhaps hope — that the strike action could come to an end April 8 to mark the celebration of Ugadi or New Year for people in the Deccan region including the states of Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu and Telangana.

The Indian physical gold market is the world’s largest after China.

In a surprise move to an industry seeking tax relief and not burden, the government introduced a 1% jewelry excise tax in its February budget, which came in addition to a 10% import tax already levied.

Since then the industry has been at a standstill. “There’s no business,” said one broker in Mumbai. This was echoed across the country.

The excise duty is another step by the Indian government to flush “black money” out of the system. For now it is having the opposite effect, although most believe that longer term the move will be a success.

A discount of $35 has been heard — against the international dollar price — but that is said to be for smuggled gold and not official sales.

An “official” discount of $15 was suggested by many.

A senior trader said that in the long run the move will be good for the industry as it will increase regulation and put gold smuggling under pressure.

He said the larger jewelry companies will likely come round and spearhead reform in the market.

Sources, ranging from bankers to importers, are requesting that the government steps in to assist the local bullion market as it struggles with an ongoing jewelers strike on the back of a new 1% excise duty.

“Negotiations need to take place, we can see the argument from the governments point of view and the jewelers,” said one senior banking source.

Regulation, regulation, regulation

India’s gold jewelry market is largely unregulated and transacted in cash. Therefore there is no audit trail, something the government wishes to change.

“When more than 70% of trade is non-transparent and not regulated, the government wants to regulate it with some harsh steps,” a dealer said.

Gold represents about a quarter of India’s current account deficit, with annual consumption of around 800-900 mt met almost entirely by imports.

However, so far in 2016 imports have hit record lows on back of an elevated dollar price and low demand owing to the industrial action. Some are now forecasting imports as low as 400 mt in 2016.

“I think they’ll be at least 600 mt,” argued one senior source, although that figure is still a long way below historic data.

The government has attempted to limit the huge import demand through taxation and schemes promoting recycling of available stock in the country, as well as the purchase of paper gold over physical.

One mechanism, the ‘gold monetization scheme’ — a means of pulling local stock, held by individuals in the form of jewelry etc., into the official system — has so far not seen “one gram” enter its vaults, according to one source with direct knowledge of the situation.

Imports continue to decline

Imports of gold bars into India totaled 18.6 mt in March, down 22% on the previous month to the lowest monthly inflow on record, Indian customs data recently showed. The total is down from February’s previous record low of 23.8 mt.

One importer said that overall the government was doing the right thing, to stop illegal activity and smuggling of gold but that current legislation needs tweaking.

The big problem for the smaller jewelers is the fact that they don’t have the infrastructure to manage inventory and accounts, according to sources.

A large jeweler said that he is hoping for a compromise by the government, but is skeptical. He said that even if he wanted to open his showrooms the smaller union members would likely cause a headache and mess up the shops in a show of force.

Hope of return to trade

However, one refiner said that he is starting to see some signs of trading activity at a low level. “Hopefully the market should reopen next week,” he said.

He said that April 6 he sold 20 kg after 50 days of zero sales. There was talk that some banks had also started shifting limited stock that was imported earlier in the year at lower duty levels.

The Indian market is a complex beast, with bullion imports hit with a 10% customs duty and then every two weeks further tweaks to the domestic duty.

Once a fortnight a local duty is pegged either against the dollar/rupee exchange rate or the morning London Bullion Market Association Gold Price.

Therefore it is possible for those that have bought at lower levels to sell at a discount as the price rises.

The local price was quoted around 82,000 rupees/troy oz April 7; or roughly 28,500/10 grams, a standard measurement in India.

Buyers are said to be looking for a price of 26,000 rupees/10 grams to spur demand. In dollar terms traders suggested a price of $1,150-1,180/tr oz as a signal to buy.

The LBMA Gold Price settled April 6 afternoon at $1,221.40/tr oz.

“The current strikes are in one way good for the government, as it is limiting gold imports. However, it is also losing revenue as the market remains at deadlock. Something needs to budge,” said one importer.

The jewelry industry is India’s third largest employer after agriculture and textiles, and a similar three-week strike in 2012 forced the previous government to reverse plans for a 1% tax on non-branded gold.

The Platts India Gold Premium, a differential paid locally to the international price, was assessed at a discount of $35/oz April 6, unchanged on day.

Without Indian demand the international community is becoming increasingly doubtful that the recent solid rally in the gold price — with Q1 the best performance in almost 30 years — will continue much longer.

Luckily for Platts, with the industry on hold, there has been plenty of time for contacts to take time to showcase the country’s true gem: its cuisine.


ciprofloxacin hcl 500 mg side effects viagra on line no prec viagra canada levitra 20 mg von bayer cipro for uti viagra pills thuoc azithromycin levitra vs viagra cialis coupon 20 mg azithromycin tablet viagra pill azithromycine acyclovir 200mg azithromycin coverage cialis side effects generic viagra finasteride 5mg side effects cialis savings card how much does cialis cost viagra vs cialis vs levitra viagra activate levitra without a doctor prescription nolvadex azithromycin three times a week lexapro generic name finasteride how does lexapro work cealis ciprofloxacin side effects after age 60 tamoxifen and weight gain cialis dosage recommendations zovirax pills finasteride medication azithromycin pregnancy category acyclovir 800 mg viagra how does acyclovir work viagra for sale uk azithromycin liquid viagra dosage generic viagra 100mg is lexapro a controlled substance viagra 100 mg tamoxifen side effects cialis daily free cialis what does azithromycin treat what is acyclovir used for cialis sample canadian viagra zovirax viagra for sale price cialis cialis from canada acyclovir finasteride vs dutasteride lexapro 10mg ciprofloxacin dosierung finasteride side effects in men finasteride side effects how long for lexapro to work what is ciprofloxacin used for cialis without a doctor’s prescription ciprofloxacin 500 escitalopram 10 mg ciprofloxacin nebenwirkungen azithromycin 500mg viagra substitute how to take cialis viagra side effects cialis reviews herbal viagra cialis website ciprofloxacin 500mg tablets side effects of azithromycin 250 mg acyclovir for shingles ciprofloxacin drug class cialis price what is cipro usually prescribed for viagra alternative viagra from canada levitra prices tamoxifen lawsuits what does viagra do pfizer viagra lexapro 20mg what is escitalopram ciprofloxacin spc lexapro what is finasteride used for side effects of azithromycin levitra over the counter viagra azithromycin pediatric dosing finasteride 1mg cilias buy viagra online generic cialis tadalafil ciprofloxacin 500 mg levitra 20mg cost per pill lexapro and weight gain in women azithromycin class finasteride long term effects azithromycin 250 antibiotic ciprofloxacin ciprofloxacin 250mg ciprofloxacin drops viagra wikipedia levitra vs viagra 9 levitra at walmart cost of viagra azithromycin for strep throat withdrawal from lexapro cialis 10 mg stopping lexapro weaning off lexapro ciprofloxacin 500 mg tabletten lexapro para que sirve online viagra viagra cialis lexapro 10 mg cialis free trial finasteride 5mg side effects mayo clinic how to use viagra tamoxifen side effects in women over 55 ciprofloxacin bnf what is azithromycin azithromycin 500 erfahrungen cialis effects escitalopram levitra generic zithromax z-pak lexapro vs zoloft discount cialis canadian cialis azithromycin vs erythromycin viagra en ligne livraison 24h canada cialis is azithromycin revatio vs viagra how to wean off lexapro cialis coupon print cyalis viagra on line common side effects of ciprofloxacin 500 mg azithromycin eye drops viagra kaufen lexapro and weight gain cheap cialis finasteride 5mg ciprofloxacin coverage cipro 500 cipro azithromycin 250mg finasteride results cialis samples tamoxifen and bone pain viagra vs cialis side effects of lexapro in women azithromycin medscape ciprofloxacin 500mg antibiotics acyclovir 400mg escitalopram effets secondaires lexapro reviews cialis 5mg lexapro weight gain cipro uses zovirax cream viagra ohne rezept auf rechnung cialis cost cialis cheap order viagra cialis or viagra zovirax dosage levitra vs viagra for hardness azithromycine eg 500 mg bijsluiter lexapro medication cipro drug class azithromycin cost viagra pillen kruidvat propecia side effects daily cialis what is tamoxifen used for cialis tadalafil levitra 10 mg prezzo cialis for bph levitra 20 mg effects of stopping finasteride side effects of tamoxifen viagra medicine is azithromycin penicillin levitra prezzo in farmacia levitra 20 mg cost walmart what is ciprofloxacin cialis medication azithromycin viagra single packs azithromycin z pak levitra bayer 20mg meilleur prix lexapro benefits for women lowest cialis prices cialis cialis patent expiration date extended cialis 20 mg sex viagra for women lexapro withdrawal symptoms escitalopram 10 mg para que sirve cipro side effects in elderly viagra 100mg tablets retail price viagra cost generic cialis viagra prices does lexapro cause weight gain viagra wiki wellbutrin and lexapro ciprofloxacin 500mg antibiotics side effects cialis 5 mg tamoxifen bijwerkingen cialis generic azithromycin 250 mg treatment what is acyclovir for celexa vs lexapro zithromax lexapro vs celexa zithromax 500 mg viagra vs cialis vs levitra what is lexapro cialis testimonials cipro side effects what is azithromycin for zithromax dosage wholesale cialis lexapro withdrawal ciprofloxacin used for viagra online effects of stopping lexapro suddenly what bacteria does ciprofloxacin kill lexapro 5mg buy cialis cheap viagra levitra coupon finasteride 5 mg tab cialis coupons cialis samples overnight what is lexapro used for cialis voucher cialis otc lexapro bula 200 cialis coupon viagra tablets cialis pharmacy prices women viagra what is cipro used for acyclovir for cold sores viagra 50mg cialis 5mg daily azithromycin for pneumonia side effects of ciprofloxacin cialis 20mg escitalopram 10mg cialis coupons printable ciprofloxacin 500 mg for urinary tract infection generic levitra vardenafil 20mg viagra coupons viagra natural cialis for men finasteride dosage cialis pills for sale lexapro for anxiety cialis copay card azithromycin 500 mg zithromax antibiotic cipro dosage tamoxifen langzeitfolgen finasteride tablets buy cialis online propecia levitra online cipro antibiotic tamoxifen interaction viagra effects viagra 100 what does finasteride do acyclovir side effects side effects of lexapro viagra for women when will cialis go generic buy generic levitra finasteride 5 mg female viagra azithromycin 5 day dose pack canada viagra side effects of finasteride 5mg viagra without a doctor prescription usa acyclovir medication levitra dosage ciprofloxacin dose natural viagra finasteride for women cialis coupons from manufacturer finasteride permanent side effects side effects lexapro acyclovir vs valacyclovir how does viagra work viagra tesco finasteride efectos secundarios viagra nebenwirkungen viagra uk cipro dangers azithromycin without a doctor’s prescription buy generic viagra cialis pills azithromycin 500 cialis dosage acyclovir 400 mg side effects of acyclovir viagra samples ciprofloxacin ophthalmic solution zovirax for cold sores generic for cialis cialis prices acyclovir 800mg viagra price sophia viagra azithromycin drug class ciprofloxacin hcl cheap levitra cialis online cialis generic availability lexapro dosage viagra receptfritt tamoxifen and foods to avoid tamoxifen citrate post finasteride syndrome viagra sex acyclovir ointment 5 tamoxifen cost lexapro side effects in women acyclovir dose buy viagra lexapro dosages levitra 20 mg precio farmacia azithromycin and alcohol what does ciprofloxacin 500mg treat cialis for sale vardenafil 20mg what is ciprofloxacin prescribed for viagra for men side effects of lexapro 10 mg levitra coupons where to buy viagra cialis vs viagra azithromycine 250 mg ciprofloxacin hydrochloride azithromycin dosage tamoxifen nebenwirkungen erectile dysfunction cialis cost of cialis lexapro side effects in men cialis 20mg directions finasteride and enlarged prostate how to wean off lexapro without withdrawals what is viagra cialis on line ciprofloxacin uses what is cialis azithromycin uses what is azithromycin used for first few days on lexapro side effects of cialis azithromycin 250mg tablets 6 pack cialis 30 day trial coupon ciprofloxacin side effects ciprofloxacin hcl 500 mg how long for azithromycin to take effect lexapro side effects men what is finasteride what infections does ciprofloxacin treat liquid cialis levitra erfahrungen lexapro side effects ciprofloxacin 250 mg tamoxifen side effects in women how to get off lexapro what is cipro lexapro vs wellbutrin ciprofloxacin 500mg zoloft vs lexapro lexapro and wellbutrin combination therapy viagra ohne rezept aus deutschland azithromycin side effects azithromycin 250 mg viagra without a doctor prescription escitalopram oxalate cialis patent expiration 2017 is ciprofloxacin a penicillin ciprofloxacin side effects of ciprofloxacin 500 mg levitra 20mg online cialis viagra vs cialis lexapro dosing acyclovir dosing levitra rezeptfrei deutschland ciprofloxacin hcl 500 mg tab buy levitra online acyclovir 800 mg 5 times a day azithromycin for uti ciprofloxacin side effects in women viagra generico how long does viagra last finasteride effets secondaires cialis 30 day sample cialis dosage strengths cialis generic tadalafil ciprofloxacin eye drops generic lexapro cialis discount escitalopram 20 mg acyclovir cream ciprofloxacin class how does cialis work cialis canadian pharmacy what is tamoxifen viagra alternatives what does ciprofloxacin treat zovirax ointment viagra sans ordonnance utilisation viagra ciprofloxacin for dogs lexapro coupons cialis professional generic cialis at walmart escitalopram side effects tamoxifen therapy ciprofloxacin dosage viagra bestellen generic for lexapro pfizer viagra coupons from pfizer viamedic cialis finasteride 5mg tab cipro and tendonitis lexapro overdose cialis alternative viagra costs cialis for daily use discount viagra lexapro and weight loss free viagra finasteride for hair loss cialis coupon lexapro manufacturer website what is lexapro for finasteride reviews what works better than viagra equipe argentine viagra buy levitra side effects of finasteride cipro antibiotics acyclovir ointment acyclovir dosage viagra coupon escitalopram nebenwirkungen viagra soft cialis trial cialis patent expiration cialis canada best price viagra ciprofloxacin hydrochloride ophthalmic cialis coupons 2017 azithromycin tablets viagra generic lexapro generic vardenafil vs viagra what is acyclovir generic levitra cialis pricing tamoxifen side effects of viagra is tamoxifen chemotherapy acyclovir 800 mg for shingles buying viagra cialis for women finasteride hair loss azithromycin pregnancy acyclovir dosage for cold sores viagra 100mg cialis vs viagra cialas viagra tablet