Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By BullionVault.com (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

BJP's Pre-Election Giveaways and Tax Cuts 'Will Boost India Gold Demand' as USD Price Holds 8-Month High

Friday, February 1, 2019 8:12

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES held 1.3% higher for the week in Dollar terms late Friday in London, trading near 8-month highs at $1322 per ounce despite much stronger-than-expected US jobs data.

Rural households in India – source of 60% of annual gold demand in the metal’s No.2 consumer country – meantime got news of huge income support and tax cuts from the BJP Government, now 2 months away from national elections.

With the Federal Reserve this week vowing to stay “patient” before raising Dollar interest rates, US employment rose by 304,000 in January, today’s data said, beating Wall Street’s average forecast by nearly 85%.

Gold prices in Shanghai earlier rose within 1 Yuan of early January’s two-year highs at ¥287 per gram, but their premium above London gold bullion quotes slipped below $10 per ounce in Dollar terms, trimming the incentive for new bullion imports into the metal’s No.1 consumer nation as the Chinese New Year holiday season began.

Wholesale prices in India meantime held a $2 discount to London, suggesting a small glut of supply as import duty and sales tax – plus this week’s Dollar price – pushed domestic Rupee prices up near all-time highs for consumers.

New Delhi’s 2019 Government Budget – delivered today by finance minister Piyush Goyal – failed yet again to cut gold’s 10% import duty as dealers had hoped.

But tax relief for small farmers and middle-class earners “will be good for increasing jewelry demand,” says Anantha Padmanabhan, chairman of the All India Gem & Jewellery Domestic Council.

Formerly world No.1 but overtaken by China since 2013, India’s household gold demand slipped 1.5% last year from 2017′s small recovery according to this week’s global demand data from the mining-backed World Gold Council, but remained almost 100 tonnes above 2016′s multi-decade low of 670 tonnes.

Standing in for Arun Jaitley – now in the US for medical treatment – Goyal didn’t refer once to gold in today’s speech to Parliament, but his supporting documents online repeat plans to develop and launch a “comprehensive Gold Policy to develop gold as an asset class” formally announced in last year’s Budget.

Goyal instead unveiled a $10.5bn program of farm-income support for small landowners, and erased income tax for wages below $7,000 with further tax cuts targeting a total of 30 million middle class workers and small-business owners.

Announced alongside India’s worst jobless rate in 45 years, this heavy spending by Narendra Modi’s BJP Government will widen New Delhi’s fiscal deficit to 3.4% of GDP.

Today’s high prices and high tax rates on gold mean smuggling volumes could rise by another one-half in 2019 reckons Haresh Acharya at the India Bullion & Jewellers Association, claiming that wholesale traders are asking 1.5% less per kilo for cash rather than check payment, to avoid a paper trail.

“Innovative” smuggling tricks discovered by India customs officials include a new “rubbery form” where gold is mixed into an elastic compound and then hidden in shoes “or even tucked into underwear” says The Times of India today.

“[Gold sales are] slow despite the wedding season,” says Acharya at he IBJA.

“Everybody is waiting for gold prices to cool off, which does not seem likely to happen in the near future.”

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: https://www.bullionvault.com/gold-news/gold-price-020120194

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

LION'S MANE PRODUCT

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Comments

Visits:	1,836,354,516
Stories:	8,727,965