Lack of proper investment opportunity is one of the main issues facing NRIs today. However, the latest dip in gold prices and the recent hike on import duties in India makes gold one of the best investment options a person can make.
The passion for gold is deeply connected with Indian culture and gold is one of the most valued assets for Indians, which is an inseparable part of their tradition. From birth to death, for men and women, among rich and poor - acquiring gold is an aspiration for the people of India. The increase of gold price in India has increased the confidence of customers to buy gold as apart from its emotional value. It is also used for financial purposes like investment and assurance during emergency.
Following the revision of Indian government's rule on the limit of duty free gold ornaments, the jewellery market in GCC witnessed an increase in sales. At present, the prescribed value of gold jewellery that can be carried by a male passenger from GCC countries to India is R50,000 and for a female passenger, the limit is R100,000.
Earlier, the limits were gold worth R10,000 for men and worth R20,000 for women. The change in this rule has increased the confidence among the passengers to carry gold to India and as a result, the jewellery sale has increased considerably. Najeeb K, regional head of Malabar Gold & Diamonds says, "The government of India had hiked import duty for gold three times last year to curtail imports - ten per cent import duty together with one per cent VAT and high premium of US$125 per troy ounce .
A family of four can easily bring gold worth R300, 000 to R400,000 from GCC to India without paying the import duty and high premium on Indian gold. This way they can save at least R60,000." (Calculations based on current gold rate and the difference in gold rate vary from R400 to R500,depending on the state) The depreciation of rupee also builds up a significant price gap between the prices in GCC and that in India.
Jewellers like Malabar Gold & Diamonds guarantees unique facilities like exchange and cash buyback offers for all their ornaments that makes their jewellery shopping even more attractive.
© Muscat Daily 2014
