Custom duty on gold

Gold Rush: Customs Duty Cut Makes Bling More Affordable!

Thanks to Budget 2024, gold and silver prices drop, and jewellery stocks are beaming! Check out the latest updates and what it means for your wallet!

In a dazzling move that'll make every gold lover jump in joy, Finance Minister Nirmala Sitharaman has waved her magic wand and slashed the customs duty on gold and silver to a sparkling 6% in the Union Budget 2024. This decision is expected to enhance domestic value addition and give the much-needed boost to the jewellery sector. As the news spread, jewellers across India rejoiced, anticipating a rise in demand and a dip in local prices, making it an excellent time for consumers to pamper themselves with that golden piece of their dreams!

If you're like most people, the thought of low gold prices combined with high jewellery stocks buzzing with activity might have you doing a happy dance. Major jewellery companies reported a surge in their shares, proving that the cut in customs duty is not just good news for buyers but also vital for the market. With this favourable shift, it's time to dig into those goldsmith savings and treat yourself to some new baubles.

However, before you rush to your nearest jewellery store, remember that the broader market volatility might keep gold prices in check despite this cut. Industry experts believe that while the demand may soar, it won’t instantly skyrocket due to varying market factors. Vikas Singh, MD and CEO of MMTC-PAMP, remarked on how gold in India is dynamically influenced by international trends, thus it's wise to stay updated and approach your purchases with caution.

In the midst of all the excitement, don’t forget that this move isn't just about glitzy ornaments. It’s also a strategic step to combat the rampant smuggling of gold from the Middle East, a problem that the government has been fighting for years. By making legal imports cheaper and encouraging domestic production, the government hopes to gain better control over the gold market, reclaiming the sparkle of official trade. As the joy of numerous dazzling pieces adorn the shelves, a new era of gold trading appears set in motion!