GJF requests members to temporarily halt selling gold coins and bars

Intending to curb gold imports into India to help the Indian government reduce the country’s current account deficit (CAD), the All India Gems and Jewellery Trade Federation has requested its members to temporarily refrain from selling gold bars and coins, reports say. Recently, Reliance Capital had suspended sales of gold across all its businesses, reports say.

The rising imports of gold, had caused the CAD to widen further; India being the world’s largest gold consumer. The GJF noted that total sale of gold bars and coins was about 35 per cent of the total imports last year and with a curb, the imports could be reduced by 10-15 percent in the current year, reports add. The Indian government in its efforts to reduce the CAD had increased taxes on gold imports from 6 to 8 percent. Also the Reserve Bank of India had called on all jewellers to make 100 percent cash purchases.

The GJF comprising of over 40,000 members is expected to review the decision to stop sale of gold coins and bars post assessing the imports of gold and the value of the Indian Rupee against the USD. Most members of the GJF have so far shown positive support towards GJF’s step to help the government.

India’s gold imports in 2012 stood at 860 tonnes, while in the January-March quarter of this year it was 215 tonnes and the said imports are expected to touch 350 tonnes in the April-June quarter.