KATHMANDU, MAY 05, 2012
Gold price hit an all-time high of Rs 48,010 per 10 gm (Rs 56,000 per tola) on Friday, jumping Rs 514 per 10 gm overnight.
The price was at Rs 47,495 per 10 gm on Thursday. The previous record was Rs 47,580 per 10 gm set on Nov 30, 2011.
The latest surge in the price is due to the hike in gold import duty, said Tej Ratna Shakya, chairman of Nepal Gold and Silver Dealers Association (Negosida). A Cabinet meeting on Thursday increased the duty to Rs 2.300 per 10 grams.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here. “The latest hike in import duty has discouraged smuggling of gold to India,” said Shakya.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. According to Shakya, gold supply in domestic market eased from Friday.
Source: Kantipur
Gold price hit an all-time high of Rs 48,010 per 10 gm (Rs 56,000 per tola) on Friday, jumping Rs 514 per 10 gm overnight.
The price was at Rs 47,495 per 10 gm on Thursday. The previous record was Rs 47,580 per 10 gm set on Nov 30, 2011.
The latest surge in the price is due to the hike in gold import duty, said Tej Ratna Shakya, chairman of Nepal Gold and Silver Dealers Association (Negosida). A Cabinet meeting on Thursday increased the duty to Rs 2.300 per 10 grams.
After India hiked gold import duty by two folds in mid-March, there was a surge in smuggling of gold from Nepal to India. Traders had been complaining that the difference between duties in Nepal and India encouraged gold smuggling to the southern neighbour, leading to a shortage here. “The latest hike in import duty has discouraged smuggling of gold to India,” said Shakya.
Gold smuggling is also related to the illicit trade of the Indian Currency (IC) prevailing in bordering areas. Black marketers sell the IC—earned from selling gold in India—at high exchange rates in bordering areas. This is one of the major reasons behind increased gold smuggling, according to traders. According to Shakya, gold supply in domestic market eased from Friday.
Source: Kantipur
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