Jewellers propose to bar gold coin sales 

KOLKATA: Amid signals of imminent fresh curbs on import of gold, jewellers plan to cut down on sale of gold coins and bars to lessen the government's worries about widening trade deficit, which swelled to $13.35 billion in October from $10.59 billion a year ago.

Gold coins and bars account for about a third of India's annual gold consumption of 850-900 tonne.

 Bachhraj Bamalwa, director of All India Gems & Jewellery Trade Federation, said, "We will issue a circular from the federation to all jewellers to suspend coin and bar sales so that the import bill does not rise on this account." 

While big jewellers like Gitanjali Group have no immediate plans to sell gold coins, smaller players like Manubhai Jewellers are also discouraging sale of gold coins. 

"We have already stopped selling of gold coins and bars and will continue this ban until the situation stabilises," said Mehul Choksi, chairman of Gitanjali Group. Samir Sagar, director of Manubhai Jewellers, said, "It is only during Akshaya Tritiya and Dhanteras that we set up a separate gold coin counter. But generally we ask customers to buy jewellery."

Leading jewellery retailers and bullion traders had in an unprecedented move last year decided to suspend sale of gold coins and bars for six months. The measure was aimed at helping the government curb imports and keep the current account deficit under check. 

Several prominent chains, including TBZ, Gitanjali and Tanishq had volun tarily stopped sales of coins and bars. The move comes at a time when investors may take a fresh look at the yellow metal as international prices of the metal have moved up a bit. The metal touched $1,200 per ounce on November 18 from $1,135 a fortnight ago.

It dropped in the early hours of Thursday and again bounced back to $1,184.25 an ounce during the day in Singapore, according to Bloomberg. 

Read more at:

http://economictimes.indiatimes.com/articleshow/45227885.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst