A lot of fluctuations have been seen in the prices of gold and silver in recent times. There have been major changes not only in prices but also in import duty, which has created a situation of both profit and loss for traders. Customers have also faced a similar situation. Meanwhile, the government has once again taken a major decision on the import of gold and silver, which may provide some relief to both the jewelery market and customers.
What is the new decision of the government?
The central government has recently reduced the basic import price for gold and silver. The basic import price of gold has been reduced by $51 (approximately ₹4,851) to $1,297 (approximately ₹1,23,381) per 10 grams, while the basic import price of silver has been reduced by $22 (approximately ₹2,092) to $1,875 (approximately ₹1,78,365) per kilogram.
What is the basic import price?
Basic Import Price is the rate used to calculate custom duty on imported gold and silver. The government changes this price from time to time based on the international market rates. Recently a similar change has been made, which can provide relief to both traders and customers.
What will be the impact on retail business?
With this decision of the government, the cost of duty for importers and jewelery traders will reduce slightly. Import of gold and silver will become cheaper than before, which will have a significant impact on the costs and margins of jewellers. If the international price and the dollar-rupee exchange rate remain stable, then some part of this benefit can also be passed on to the customers.
Will gold and silver prices go down?
This decision of the government can also provide relief to common customers regarding the prices of gold and silver. Because in the coming days, there may be some relief in the prices of gold and silver jewelery as well as bullion (gold and silver in the form of biscuits/coins). However, this relief may be limited, as the final price depends on many other factors.
