Thursday, August 16, 2012

India's Tax on Gold Jewelry Resulted in Crashing Demand



Global gold demand fell, due to India's excise tax on gold jewelry. So Finance Minister Mukherjee rolled the tax back in May.  Gold jewelry once again drives demand in India, the world's largest consumer of gold.  Today's Telegraph article makes it seem that the tax is still in place.  This is misleading, hence the second article.  Gold prices may rise now that the tax is no longer in effect.

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9479161/Global-demand-for-gold-falls-7pc.html

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=151015&sn=Detail

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