The retailers must also produce the association´s membership certificate and Permanent Account Number (PAN) to purchase gold from the wholesalers.[break]
“The new provision to some extent has helped us manage the supply, which is lower than what the market demands, in the market, Tej Ratna Shakya, president of Negosida, told Republica on Sunday.
Shakya said the association was also mulling over designating its member dealer outside the Valley to coordinate supply of gold at the local level. Demand for gold out of the Valley is about a half of the total gold demand.
He further added that persisting short supply of gold has encouraged black marketing and smuggling of gold from India, leading to loss of around Rs 400,000 to Rs 500,000 in revenue per day. “Some traders are overcharging customers by Rs 200 to Rs 300 per tola (11.664 grams) taking advantage of supply deficit,” Shakya added. “According to our estimates, about 10 to 15 kg of gold is being smuggled from India every day to supplement the supply deficit in the market,” he added.
Meanwhile, price of gold has continued to rise in the domestic market thanks to rise in international prices due to rapid fluctuation in the value of US dollar. Gold was selling for $1,215 per troy ounce in international bullion market on Friday.
The association, which fixes the price of precious metals in the domestic market, fixed gold price at Rs 30,650 per 10 grams on Sunday, up from Rs 30,460 recorded on Friday.
Gold dealers have been demanding at least 20 kg of gold per day to ease demand in the market.
A recent study conducted by Negosida shows that total daily demand of gold across the country stands at 35 kg. However, the government makes available only 10 kg of gold a day to dealers through the designated banks.
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