Gold's own country: India's booming smuggling sector
The Morning Brief
00:00
The Importance of Organized Trade in India
Government has two objectives in raising duty. One is obviously to get more money because there is dollar involved except for the other is to curb demand itself. You cannot curb demand by raising the duty, it's been proven time and again. In fact, you increase the duty people who have bought gold last year feel they have done a good decision. So you actually end up feeding the expectation again. As I said, it's a very sensitive topic because government wants to discourage gold. There is no mining of gold in India. Recycling is just 1,800 tons. It's not rising to some 300 tons gold monetization scheme.
Play episode from 26:49
Transcript
