As gold premiums soar, Indian jewellers struggle to sell their wares amidst tight supplies of the precious metal.
by Shivom Seth, MineWeb.com
The gems and jewellery industry in India is in a quandry. Facing a severe liquidity crisis, retailers are up in arms about the new 20-80 principle worked out by the Reserve Bank of India to curb gold imports.
Consumers, on the other hand, are waiting on the sidelines and watching. With gold premiums in India soaring to new heights, the rise in premiums and a weak rupee have together denied buyers the benefit of the fall in the global prices.
The price of gold hit new highs in the Mumbai market this month, with 10 grams of gold costing around $477.20 (Rs 28,150) on Friday, though it had slipped a bit to $471.31 (Rs 27,800) per ten grams on Thursday, July 25.
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