• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 24 hours Reality catching up with EV forecasts
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 13 days US Oil Independence is a myth and will always be a myth
  • 2 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 8 days The Federal Reserve and Money...Aspects which are not widely known
  • 17 days Natural gas price to spike when USA is out of the market
  • 13 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 16 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 16 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Why Oil’s 7-Month Downturn May Be About To Reverse

Why Oil’s 7-Month Downturn May Be About To Reverse

Commodity analysts at Standard Chartered…

Gold Or Silver: A Guide To Buying Precious Metals

Gold Or Silver: A Guide To Buying Precious Metals

When investors expect rising inflation…

Recession Fears Could Send Precious Metals Higher

Recession Fears Could Send Precious Metals Higher

As recession fears return to…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

India’s Gold Demand Booms Ahead Of Regulation Shakeup

Key Africa gold nation Tanzania stepped up its fight against miners this week. Accusing Barrick Gold-backed Acacia Mining of operating illegally in the country — as well as underpaying government royalties.

That should mean a continued lack of gold supply here. With the drop in output coming as bullion demand is reportedly ramping up in one of the world’s major markets — where new policies are continuing to re-shape the face of the gold market.

India.

Local press reported that gold buying in India has seen a major spike the last few weeks. After the government decided earlier this month to adopt a new 3 percent sales tax on bullion.

ADVERTISEMENT

That new tax is going to make gold buying more expensive in India going forward. With the new rate scheduled to take effect on July 1.

With that deadline looming, buyers have reportedly been scrambling to pick up supplies now, before the new tax rates become effective. So much so that many Indian jewellers are reporting sales of gold for wedding gifts being made now — despite the fact that wedding season doesn’t begin until winter.

Tax rates on gold after this month are actually likely to rise even further than the posted 3 percent sales tax rate. Because of an additional levy being placed on the gold jewelry manufacturing sector.

ADVERTISEMENT

Officials said this week they will impose a 5 percent goods and services tax on the “making” of gold products. Payable by jewellers, who will presumably pass the charges along in pricing to end consumers.

The 5 percent rate for the manufacturing tax is actually a win for India’s gold-makers. With the government earlier planning to charge an 18 percent tax — but then backing off to the 5 percent mark after meetings over the weekend.

But even at that lower rate, the total increase in taxes for India’s gold buyers is going to be significant. Watch for stats on buying after July 1 to see the effects on demand in this critical market.

Here’s to being taxing.

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News