Reduction in Taxes Leads to Decrease in Gold and Silver Prices
In a significant move for buyers, Union Finance Minister Nirmala Sitharaman announced a reduction in taxes on gold and silver in her recent budget presentation. This decision has led to a notable decrease in the prices of these precious metals. On Wednesday, the second day of the budget, gold prices fell by ₹4,000 per 10 grams. The current rate for 24-carat gold in the bullion market is ₹69,194 per 10 grams. Silver, meanwhile, opened at ₹84,897 per kg.
Following the budget announcement on Tuesday, gold prices experienced a sharp decline of ₹3,616 per 10 grams, while silver prices fell by ₹3,277 per kg. According to the Indian Bullion and Jewellers Association (IBJA), the price of 24-carat gold has decreased by ₹408 to ₹69,194 per 10 grams today. Additionally, 23-carat gold is down by ₹406 to ₹68,917 per 10 grams, 22-carat gold has dropped by ₹373 to ₹63,382, and 18-carat gold has fallen by ₹306 to ₹51,896 per 10 grams. The price of 14-carat gold has also reduced by ₹238 to ₹40,479 per 10 grams. Silver saw a minor decrease of ₹22 today, starting at ₹84,897 per kg.
Impact of Customs Duty Reduction
In her budget speech, Finance Minister Nirmala Sitharaman announced a reduction in the customs duty on gold and silver from 10% to 6%. This change has led to a decrease of ₹4,024 in gold prices and ₹3,299 in silver prices over the past two days.
Additional Insight
The reduction in taxes on gold and silver is expected to boost demand for these precious metals in the market, especially during times of economic uncertainty. Lower prices due to reduced taxes may attract more buyers and investors, leading to increased trade volume and liquidity. Additionally, this move by the Finance Minister aims to make gold and silver more accessible to the general population, potentially promoting savings and investments in these traditional assets.
