The domestic jewelry sector in the country is reported to be facing severe shortage of gold. The tight curbs of gold imports including the high levy on gold import by nominated agencies and RBI’s 80:20 rule have narrowed imports of the precious yellow metal.
In a letter written to the Indian government, the Congress Party Chief Sonia Gandhi has called for easing of gold import duty and the controversial 80:20 rule which stipulates that 20% of all gold imports must leave the country as exports.
According to statistics, inflow of gold into India through legal channel has witnessed phenomenal rise in recent times. Gold houses have turned to Non-Resident Indians (NRIs) to import gold after paying duty. Moreover, Indians prefer to buy gold from international market, mainly on account of two reasons.
The Indian Commerce Ministry declared that the government may review its gold import policy in order to meet the demands of the industry. Addressing a press conference, The Minister of Commerce and Industry, Anand Sharma stated that the government may lift the curbs on gold imports soon.
Mining success is not measured in ounces and dollars but instead by healthy margins, argues Robert Cohen. In this interview, Cohen declares that investors should seek out projects that will earn profits of 20%–35%, regardless of size, and takes us on an around-the-world tour of companies that hit this sweet spot.