Jewellers' gold saving scheme not for investment

Indians' appetite for gold hasn't gone down despite higher tax on gold imports this year

Ask ten people around you about investment in gold and 8 or 9 are likely to say they have jewellery worth an x amount. A recent report by the World Gold Council showed India’s gold demand stood at 262 tonnes in the last quarter of 2012 as opposed to 185.5 tonnes in the corresponding period the year before. Despite the government's increase in customs duty on gold imports, the import of yellow metal only dropped 12 per cent decline at 864.2 tonnes last year compared with 986.3 tonnes in the year before.

 This appetite did not reduce after the higher tax on gold imports this year too, say industry experts.
 Says  Balram Garg, MD of PC Jewellers, “The import duty hike has been passed on to the customers.”

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