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Jewellers not to sell gold coins,bars this Diwali

This Dhanteras and Diwali,you may not be able to buy gold coins and bars.

Written by ENS Economic Bureau | New Delhi |
July 11, 2013 12:46:49 am

This Dhanteras and Diwali,you may not be able to buy gold coins and bars.

This is because jewellery shops and jewellers have been requested by their trade federation to stop the sale of bullion and coins to retail as well as corporate buyers for the next three to four months.

“This is a request from the federation to all our member jewellers as it will help bring down imports over the next few months and so ease pressure on the current account deficit (CAD),” said Vikas Chudasama,director general,All India Gems and Jewellery Trade Federation.

Gold coins and bars account for up to 20 per cent of all gold sales in the country by jewellers. The federation is hoping that jewellers will follow the direction even during festivals.

“This is just a temporary measure,but if we don’t follow through with this,there may be a situation when jewellers don’t have any gold to sell. The government and the Reserve Bank of India have already restricted gold imports,” said Chudasama. The federation,which has over three lakh jewellers and retailers as members,apart from manufacturers,wholesalers,and exporters,has also held over a dozen meetings across the country to explain the impact of gold sales on the CAD. Sale of gold coins has already been stopped by public sector banks that are also not importing fresh stocks from abroad except on consignment basis. Imports have dipped to 28 tonnes in June from 162 tonnes in May.

The finance ministry has hiked the import duty on gold to 8 per cent and the central bank has restricted imports of the yellow metal by agencies or star trading houses.

Curbing imports

* Gold coins and bars account for up to 20% of all gold sales across the country

* The All India Gems and Jewellery Trade Federation held several meetings to explain the impact on gold sales on the current account deficit

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