Gold coin, bar sales on hold for 6 months

July 11, 2013

Gold_coinNew Delhi, Jul 11:In an unprecedented move, top jewellery retailers and bullion traders across the country have decided to suspend sale of gold coins and bars for six months. The measure is aimed at helping the government curb imports and keep the current account deficit under check.

Several prominent chains, including TBZ, Gitanjali, Tanishq and Mukesh Ambani's Reliance Jewels, will voluntarily stop sales. Coins and bars account for more than a third of gold sales in the country. India is the world's largest gold buyer, at 860 tonnes a year. Market estimates suggest that the demand for coins and bars surged 150% in the past four years.

The move by top jewellery retailers and bullion traders to suspend sale of gold coins and bars for six months comes at a time when the government and the Reserve Bank of India have asked banks to go slow on selling gold coins and bars and players such as Anil Ambani's Reliance Capital have pulled out of the business.

Although the government had taken several steps to tame sales, the impact has been slow and it was only in June that there were signs of demand cooling down. "We had a meeting with the government last month after the restrictions on gold imports were introduced. As an industry body, we realized we have to regulate ourselves. If the sale of coins and bars is stopped, it will restrict imports significantly," said Ashok Minawala, board member at the All India Gems and Jewellery Trade Federation which asked traders across the country to stop taking orders for bars and coins.

"Demand for gold jewellery in the last 10 years has remained more or less constant. But investment demand has increased manifold. We will not promote the sale of coins and bars till CAD issue is resolved," said Sanjeev Agarwal, CEO of Gitanjali. The jewellery brand has stopped purchase of coins and bars already and is currently only liquidating its stocks.

While consumers will find it tougher to get hold of gold coins, retailers will not be hit due to the low profit margins. Against a profit margin of 8-12 % on diamond and gold jewellery, the margin on coins and bars is as low as 1-2 %. "Jewellers stock coins and bars only because consumers ask for them on special occasions or for investment purpose. Most of it is converted into jewellery after couple of years," said Agarwal.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 16,2020

Bengaluru, Jun 16: A woman employee at the Vikasa Soudha, next to Vidhana Soudha, the State Secretariat, was tested positive for COVID-19 on Tuesday.

Hence the authorities sealed the Food Department offices, which was in the ground floor of the building.

Employees of Vidhana Soudha and Vikasa Soudha were shocked after learning that one of their colleagues tested positive for the dreaded killer coronavirus.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 26,2020

Bengaluru, Jul 26: Paying tributes to the martyrs of Kargil war on its 21st anniversary, Karnataka Chief Minister B S Yediyurappa on Sunday said his government always stood by the soldiers and families of those who laid down their lives to protect the borders of the country.

"The government is always committed to the welfare of the soldiers. Karnataka has formed a separate department for the welfare of the soldiers and their families. We always stand with the families of the martyred soldiers," he said. He was addressing soldiers after paying tributes to the martyrs of the Kargil war at an official function organised on the occasion of Kargil Vijay Diwas at the National Military Memorial Park in the city by the Sainik Welfare and Resettlement Department under the state Home Department. 

Yediyurappa described as a symbol of India's valour and sacrifices the Kargil Vijay Diwas, observed to commemorate its victory over Pakistan in the war that ended on July 26, 1999 with recapture of the territory in Kargil. He said the state government has given due compensation to the families of the Kargil martyrs and the soldiers who were injured.

Recalling the conflict, Yediyurappa said Pakistan had set its eyes on grabbing the vast terrains of Kargil and Drass sector in Jammu and Kashmir but the Indian soldiers successfully fought a deadly battle at a height of 17,000 feet where the temperature goes up to minus 30 degrees celsius.

"The sacrifices of our soldiers will remain etched in our memories forever. The tale of the 527 soldiers, who sacrificed their lives to save our country, is a constant source of inspiration for our youth," the Chief Minister said. He also noted Karnataka's contributions to the Indian army and said the state had given two Generals, one Field Marshall, many army officers and innumerable soldiers to protect the country's borders. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 17,2020

Bengaluru, May 17: Karnataka Deputy Chief Minister and Transport Minister Laxman Savadi on Sunday wrote to Union Minister Nitin Gadkari requesting to issue new lockdown guidelines including permission to operate public transport and said the lockdown has caused a financial loss of Rs 16,00 crore to all four Karnataka Transport Undertakings.

In view of these problems, the state Transport Minister requested Gadkari to permit the deployment of Non-AC buses on scheduled routes to ensure the adequacy of services.

The four State Transport Undertakings (STUs) in Karnataka which are providing bus-based public transport services within the state and to the neighbouring states are Karnataka State Road Transport Corporation (KSRTC), North West Karnataka Road Transport Corporation (NWKRTC), North Eastern Karnataka Road Transport Corporation (NEKRTC) and Bangalore Metropolitan Transport Corporation (BMTC).

"KSRTC, NWKRTC and NEKRTC operate buses for mofussil services i.e. Interdistrict, intradistrict and interstate, whereas BMTC operates only in urban and suburban areas in the city of Bengaluru. The four STUs put together hold a fleet of about 24,900 buses including 1,520 air-conditioned buses and operate about 71.00 lakh km. per day and carries about 98.00 lakh passengers every single day," Savadi outlined in the letter.

The Minister said due to the COVID-19 outbreak and the lockdown that ensued have brought regular bus operations and functioning to a grinding halt.

"This has caused a devastating impact on the operations of all the four STUs due to the combination of lack of revenue and continuing fixed costs such as salaries and pensions to staff, payables against existing loans etc. It has been estimated that the lockdown has caused a financial loss of INR 1,600/- crore to these four STUs," he added.

Savadi said even after post-COVID lockdown, operations and revenues won't reach its previous demand& supply patterns in the next six to eight months due to reduced economic activity and users' perceived risk of contacting COVID in public transport.

In addition to that, "occupancy should be allowed up to seating capacity (without standees). This is essential to meet minimal demand," he said in the letter.

"The crew should wear facemask and hand gloves. The crew with health issues should not be deployed. The face masks should be made mandatory for all the passengers. Only asymptomatic persons should be allowed to travel in public transport. The Government of India may consider staggering working hours for various sectors to reduce peak hour traffic demand," the minister listed out these recommendations in the letter.

Savadi said that with social distancing norm of reduced seating capacity in public transport, it will not be possible to provide transport facility to all the daily passengers. This will create demand for more buses, which cannot be met.

"Restrictions on public transport will lead to passenger commute by overcrowding in smaller vehicles like cars, maxi cabs, goods tempos etc. which will adversely affect preventive measures," he added.

Therefore, Savadi requested Union Minister to look into the above matter and issue fresh guidelines to all the states / UT's.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.