RBI to announce facility for NRIs to exchange old notes
The Reserve Bank of India (RBI) on Saturday said that it will introduce a facility for exchange of old specified…
Apart from real estate, gold prices are also likely to come under pressure in the wake of the government’s announcement to demonetise Rs.500 and Rs.1,000 notes in a bid to move to a cashless economy. But for now, the gold prices peaked as people rushed to convert their unaccounted for cash into gold.
Gold buying is typically more in cash economy as people tend to use their unaccounted for and untaxed wealth to buy gold. Gold sales will be hit and the prices will come down in short-term as cash purchases will be deferred due to scrapping of notes, say market watchers. But for now, a spike in the gold sales was reported from across the country. People made a beeline to convert their unaccounted for cash into gold as the jewelers were willing to backdate the entries to avoid tax authorities.
The prices of the precious metal zoomed to 34,000 per 10 grams in Ahmedabad.
”Whatever gold is available with jewellery shops have been sold,” claimed president of Gems and Jewelry Trade Council of India, Shantibhai Patel. This may, however, be a trend in the short run as people rush to convert their black money into gold. But after the initial buying spree, the gold prices are going to fall, market watchers added.
Anjul Tomar/thestatesman.com
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