Gold glitter may blind you again

Buying gold means shelling out more cash now. The Union Budget announced on Friday increased customs duty on precious metals, making gold a little more expensive.

The budget has changed the base gold  and platinum rates for levying customs duty to Rs300 per 10 gm from Rs200 per 10 gm. On silver, the duty has increased to Rs1,500 per kg from Rs1,000 per kg. The gold prices went up by Rs130/10 gm, while silver prices went up by Rs515/ kg on Friday.

Ranka Fatechand, the chairman of the Pune Saraf Association, said, “The prices will go up for most precious metals including gold, platinum and silver.”

C Vinod Hayagriv, chairman, All India Gems and Jewellery Federation, said the gems and jewellery industry in country was turning into an organised sector, but the increase in the duty will now encourage smuggling in the market. “The government could have avoided the increase in the duty; in fact they should have brought it down to zero. They should have taken the opportunity to make the country a trading hub in gold,” said Hayagriv.