The Indian gold industry is considered to be one of the largest industries in the world. The industry has witnessed a lot of ebb and flows last year, right from excise duty rates to introduction of PAN card for purchase of gold and the demonetisation drive. All these factors, along with introduction of goods and services tax (GST) and the election of Donald Trump as US president will together frame the outlook for gold in 2017.
Experts say the government can clarify that if women inherit gold up to 500 gm, it can be considered as ‘stree dhan’ (women’s property). And if such inheritance can be supported by documents — bills or will of gift, deed etc — then such gold, when deposited under the GMS, no questions on the source will be asked. There are still a few measures on which the government is working. The first is compulsory hallmarking of jewellery. The government now has the powers to penalise the holders of jewellery that is not hallmarked. However, early this month the government prescribed that only three standards will be followed and 14-, 18- and 22-carat jewellery could be hallmarked.
This year India will implement its own gold standards. This means gold refined by Indian refiners following prescribed standards will be accepted as valid tenderable gold in accordance with Indian standards on commodity exchanges and international markets. At present the global benchmark for refined gold is the gold standard fixed by the London Bullion Market Association (LBMA)
The government’s fight against black money and corruption began with the income declaration scheme. The denomination of R500 and R1000 notes is a sequel to same and we support this relentless fight against corruption. Demonetisation is definitely going to leave its effect in the initial months of the coming year. We may not achieve a good sales figure in comparison to previous years, but the aspiration that people have for the yellow metal, makes jewellery buying an important part of the season. Besides, it is a good time to invest in gold as the rates are low and it is expected to be the same for the next quarter.
All these factors are having an adverse impact across the sector. However, high end jewellery brands are largely a part of an organised market and transactions are done on the basis of an invoice. Earlier, a large portion of the population bought gold jewellery for investment and also as a status symbol.
Gold purchases, of late, has been more need-based. In 2017, consumers’ preference would be more for lightweight jewellery with emphasis on innovative jewellery designs. Customers today prefer buying jewellery that they can actually wear rather than keeping it in the lockers. Everyone is looking to buy jewellery that can be worn, which largely includes earrings, chain and pendants, rings, nose rings, etc.
Experts say the government can clarify that if women inherit gold up to 500 gm, it can be considered as ‘stree dhan’ (women’s property). And if such inheritance can be supported by documents — bills or will of gift, deed etc — then such gold, when deposited under the GMS, no questions on the source will be asked. There are still a few measures on which the government is working. The first is compulsory hallmarking of jewellery. The government now has the powers to penalise the holders of jewellery that is not hallmarked. However, early this month the government prescribed that only three standards will be followed and 14-, 18- and 22-carat jewellery could be hallmarked.
This year India will implement its own gold standards. This means gold refined by Indian refiners following prescribed standards will be accepted as valid tenderable gold in accordance with Indian standards on commodity exchanges and international markets. At present the global benchmark for refined gold is the gold standard fixed by the London Bullion Market Association (LBMA)
The government’s fight against black money and corruption began with the income declaration scheme. The denomination of R500 and R1000 notes is a sequel to same and we support this relentless fight against corruption. Demonetisation is definitely going to leave its effect in the initial months of the coming year. We may not achieve a good sales figure in comparison to previous years, but the aspiration that people have for the yellow metal, makes jewellery buying an important part of the season. Besides, it is a good time to invest in gold as the rates are low and it is expected to be the same for the next quarter.
All these factors are having an adverse impact across the sector. However, high end jewellery brands are largely a part of an organised market and transactions are done on the basis of an invoice. Earlier, a large portion of the population bought gold jewellery for investment and also as a status symbol.
Gold purchases, of late, has been more need-based. In 2017, consumers’ preference would be more for lightweight jewellery with emphasis on innovative jewellery designs. Customers today prefer buying jewellery that they can actually wear rather than keeping it in the lockers. Everyone is looking to buy jewellery that can be worn, which largely includes earrings, chain and pendants, rings, nose rings, etc.
