Gold nearly 28% higher as Indians buy cash without invoices
Gold prices surged to a record earlier this year and have since eased, though they remain almost 28% higher than a year ago, and a lot of Indians are now buying gold without invoices, basically paying cash to get up to 6% off for bulk buyers.
This off-the-books trend picked up after the government raised import duties on gold and silver to 15%, hoping to cut down on trade deficits.
Gold discounts reach ₹6,000 per 10g
A 3% GST on gold and a huge 28% price jump in the past year have pushed even more buyers, like Anuradha, to choose cash deals.
Since India imports most of its gold, traders are turning to informal channels where discounts can reach ₹6,000 per 10gm.
Despite fewer official imports, these under-the-radar sales stay strong, especially with wedding and festival season coming up.