Page 31 - Bullion World Issue 9 January 2022

Bullion World | Issue 09 | January 2022

India's Trade Deficit

Widened As Gold Import Government to sell
confiscated gold only to RBI
Bills Have Surged
hereafter

Indians are again bagging massive amounts of
gold, although the prices surged this time. As Under the new guidelines, SPMCIL has been engaged for
they are buying gold from Indian markets, gold collection, transportation and conversion into standard gold
import bills are rising significantly, widening the bars and delivery to RBI
trade deficits. In April-November, this year, India's
trade deficit expanded to $122 billion. In the first 8 Finance Ministry has decided that hereafter seized or
months of the current fiscal, gold import bills have confiscated gold will be sold to the Reserve Bank of India (RBI)
only. This does not include gold ornaments or jewellery.
surged 170% than to the same period of the earlier
fiscal. This eventually increased the trade deficit of The Ministry has amended the guidelines and the amended
the country. version says, “It has now been decided that henceforth seized/
confiscated gold will be sold (other than gold ornaments/
Source: https://www.goodreturns.in jewellery/articles) to RBI only. In this regard, the Board has
consulted RBI and Security Printing and Minting Corporation
RBI Tanks Up On of India Limited (SPMCIL) and also signed a tripartite
Memorandum of Understanding (MOU) with them.”
Gold, Decline in Major

Currencies Continues Old guidelines prescribed gold in various forms such as bullion,
jewellery, ornament, seized/ confiscated by the field formations
of CBIC including the Directorate of Revenue Intelligence to be
RBI has bought 71 tonnes of gold in just 10 months sold to the Public Sector Banks and other agencies.
this calendar year. Falling global prices of gold,
economic uncertainty, decline in major currencies Source: https://www.thehindubusinessline.com
such as US dollar prompt the buying spree.

Gold has a very unusual lover. The charm of
the yellow metal has had a potent impact on What works and what does
the Reserve Bank of India, which has been on
a gold buying spree since 2009. In the first 10 not in silver exchange-traded
months of this calendar year alone, India’s central funds
bank has bought 71 tonnes of gold, which is the
second highest annual level of buying in the new
millennium. In 2009, India bought 200 tonnes of Mutual fund houses have been rushing to apply for silver
gold from the International Monetary Fund (IMF). exchange-traded funds (ETFs) after the markets regulator,
the Securities and Exchange Board of India (Sebi), allowed
Source: https://www.outlookindia.com these instruments to be introduced in India. These ETFs are
passively managed funds that will be investing a big portion
of their assets in physical silver and tracking its performance
as close as possible to the price of the commodity. We asked
experts whether this new investment instrument will help
home buyers.

Source: https://www.livemint.com
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