Compared to last Diwali, the current gold price is Rs. 3000 high

- Commodity Current : Jayavadan Gandhi

Meanwhile, during Diwali, in the gold and silver market this year, the jewelers have put a lot of effort to do maximum business, but the question of inflation is bothering them. Gold has become cheaper in Vaishchik market. Due to currency and tax issues in Indian markets, gold has become expensive and has affected demand. Internationally, last Diwali, gold prices were around $1780 per ounce. Which has now broken down to 1670 dollars, that is, an average of 100 to 110 dollars has become cheaper. Similarly silver was around 23.80 dollars last year which is currently at the level of 19 dollars. But due to higher taxes and currency erosion in Indian markets, gold and silver prices have risen. Last year, the price of gold was around 49000 rupees on Diwali and currently it is running at the level of 52000 rupees. 15% import duty and 3% GST on gold imports results in a total tax burden of 18%. Also, last Diwali, the dollar was around 74 rupees, which is currently around 82 rupees, due to the huge increase in the import of gold, the purchase of gold in Indian markets has become more expensive than other markets of the world. Due to which the amount of smuggling in the country is also rising significantly. As the price of gold varies by 8 to 10 thousand rupees per 10 grams, the traveling class is buying gold from abroad.

As buying gold during Diwali is considered very auspicious in Hindu scriptures, the business of gold and silver also increases significantly. Along with currencies, oil, gold is the largest investment in the world. It is said that gold is available cheaper than India in some countries of the world like Dubai, Switzerland, Hong Kong, Thailand. Dubai has become a gold hub for tourism as well. The main reason why gold is cheap is considered to be the fact that the Dubai government does not impose any kind of tax on the gold business. Switzerland, famous for the safety of black money, is also famous for gold. Swiss watch companies are famous for their designer golden watches. Zurich, Switzerland is considered to be a great shopping city for watches with a wide variety of watches. Apart from this, Hong Kong is also getting cheap gold due to the rich tax incentives of the government. Hong Kong has the most active gold trading market in the world. Besides being famous for beautiful beaches and tourism, Thailand is also well known for cheap gold. Bangkok and China Town in Thailand are well-known centers for buying gold where one can get good quality gold at reasonable prices. Cheap gold purchased from abroad can be brought as per the Central Indirect Tax and Customs guidelines of the Government of India.

During the Diwali festivities, inflation is on the rise due to a continuous surge in the dollar in the foreign exchange market. Due to the high prices of gold-silver, metal and agri commodities, the expected demand is being seen in the markets. Currently, there are reports that the government is moving in the direction of increasing support prices to alleviate the resentment over the burning issue of inflation during the assembly elections. Besides providing direct financial assistance to the farmers, the government has increased the price of half a dozen commodities by six to nine percent. The government has agreed to the demand for increase in support prices of items like wheat, pulses and rice. In order to control the inflation, the government is going in the direction of turning a blind eye to stocks of essential commodities, exports and speculations. As expected production targets are not being achieved even in Kharif crop, due to lack of supply, prices are out of control during festivals. Rising demand in commodities like grains, pulses, edible oils, booming markets is becoming a headache for the government.