GOLD buyers in India are being put off by record Gold Prices, according to Indian press reports.
Rupee Gold Prices hit Rs29,695 per 10 grams in Delhi on Thursday – the latest record Rupee gold price. High Gold Prices however appear to be denting Indian demand to Buy Gold – with last month's Akshaya Tritiya gold sales estimated to be down 50% compared to last year's festival.
"Prices have hit the roof as taxes and the weakening Rupee have made gold expensive compared to the previous peak of Rs 29,516 in mid-November last year," says Siddharth Mehta, chief strategist at Rajesh Exports, the biggest gold importer/exporter in India, and owner of Shubh Jewellers, a chain of gold jewelry retailers.
"Retail price today is at a historic high," added Bachhraj Bamalwa, chairman of the All India Gem and Jewellery Trade Federation, speaking on Thursday.
"At this level, buying will fall further unless some corrective measure is taken."
India imported an estimated 30 to 35 tonnes of Gold Bullion in April – down from 90 tonnes in the same month last year – according to the Bombay Bullion Association.
As well as high Gold Prices, the Indian market has been hit with two hikes in import duties this year, as well as an extension of a sales tax to unbranded gold jewelry.
Indian jewelers staged a three-week shutdown in March and early April in protest.
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