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.

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February 26,2020

Mysuru, Feb 26: Twenty-nine students of the Government Primary School fell sick after consuming milk supplied at the school on Wednesday morning at Kiranguru village, in Hanagodu hobli, in the hunsur taluk in the district.

Police said the students were immediately rushed to the primary health centre in Hanagodu and provided first aid.

Tahsildar and Police personnel visited the health centre and inquired about the health of the students. "All the students are responding to the treatment," sources said.

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News Network
June 23,2020

Bengaluru, Jun 23: Former Karnataka Chief Minister HD Kumaraswamy on Tuesday demanded that Bengaluru should be put under lockdown for 20 days to contain the spread of coronavirus, the cases of which have risen sharply recently.

 “Stop playing with people's lives. There’s no use in sealing off only some areas. If the people of Bengaluru must live, then a lockdown of at least 20 days is needed. Otherwise, Bengaluru will become another Brazil,” Kumaraswamy said in a tweet. “People’s health is more important, not economy.”

The JD(S) leader was reacting to the BJP government's decision to impose an area-wide lockdown in Chickpet, KR Market, Kalasipalyam and Chamarajpet while streets will be sealed off in VV Puram, Siddapura, Yelahanka, Vidyaranyapura and Chickpet.

Bengaluru has witnessed a huge spike in its Covid-19 tally; the city currently has at least 919 active cases. This has sparked off fears that the contagion might have reached the community.

Kumaraswamy has also demanded welfare measures for the poor. “The poor and the labourers should be given ration immediately. The state’s 50 lakh working class should get ₹5,000 each. The aid already announced by the government hasn’t reached drivers, weavers, Madiwalas and other communities,” he said, adding that mere announcements of a package won’t be enough and “it has to be implemented.”

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News Network
June 8,2020

Bengaluru, Jun 8: Normal life is slowly returning to normal across Karnataka with the state government further easing the restrictions by throwing open places of worship, hotels, malls for the public.

Despite these places being opened after a gap of more than two months, the places wore a deserted look as the people are and cautious and not ready to take of risk of venturing out amid the ongoing Corona threat.

"Business is not as heavy as expected though it was allowed after a gap of almost three months. You can see for yourself the crowd, it is not what it should have been in a commercial area like this prior to the imposition of lockdown. However, hope it will improve", a Cloth merchant B Ramesh told UNI when asked for his reaction.

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