by Jan Skoyles, TheRealAsset.co.uk
We’re all aware by now of the import duties placed on both gold and silver in India, courtesy of the RBI.
For the third time this year, the RBI yesterday announced a further increase on import duties on the precious metals. Both gold and silver now carry a further 10% charge should you wish to import them. Gold price premiums are expected to rise above $100 on London prices.
We all know that this move is designed to cut the current account deficit. After crude oil, gold is the second most imported commodity in the country.
It is worth asking about the efficacy of these measures. The measures have not only impacted gold imports, particularly after the announcement of the 80/20 import and export restrictions, but they have made an impact far beyond numbers on a balance sheet.
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