Demand for gold jewellery falls 12% due to increase in prices

India’s demand for gold jewellery was down by 12% in the first quarter from a year ago, as the rising price of gold discouraged consumers, the World Gold Council (WGC) said. Also, small jewellers faced issues transitioning to GST, it observed.
 
In the first three months of 2018, jewellers sold 87.7 tonnes of gold ornaments worth Rs24,130 crore, marking the third weakest quarter for gold demand in the country in almost a decade, according to the WGC.
 
Despite a drop in Q1 demand, WGC India managing director Somsundaram PR said that gold consumption in 2018 would be close to 800 tonnes, as rural demand was expected to pick up following the government’s policy focus on doubling farm income. Also, retailers in the unorganised sector have been settling down with the goods and services tax (GST). In 2017, gold consumption in India stood at about 737 tonnes.
 
“A substantial drop in the number of auspicious wedding days during the Q1 of 2018 compared with Q12017 could be a factor for muted demand, as consumers made less wedding-related purchases,” the India head of WGC said. “Imports were down 50% year-on-year in anticipation of an import duty cut in the budget which did not materialise.” 
 
“Trade activity resumed positively during Akshaya Tritiya, demonstrating the resilience of the industry. Policy focus on doubling farm income and ease of business under GST augur well for the gold industry in 2018 and the medium term,” Somasundaram said.

User

  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
img
Debashis Basu
Founder