Understanding Union Budget 2024: Gold and Silver Prices Reduced
Customs duties on gold, silver, and platinum have been significantly reduced, leading to a drop in prices and a surge in jewellery stock shares.
Watch our previous videos covering the Union Budget:
https://ish.news/wb-24-07-2024_1
https://ish.news/wb-25-07-2024_1
Great news for jewellery lovers! The customs duty on gold and silver has been reduced from 15% to 6%. The customs duty on platinum has also been cut to 6.4%.
In India, there are stock markets like BSE and NSE where company shares are bought and sold. Similarly, there is MCX (Multi Commodity Exchange) where commodities like gold, silver, metals (copper, aluminium), pepper, cotton, oil, etc., are traded. When you buy commodities on MCX, you don't own them physically; it's like owning shares on paper. Just like company share prices fluctuate, commodity prices also go up and down.
Following this announcement, the prices have dropped as follows:
- Gold: Rs.72,700 per 10 grams on 23rd July 2024 (cheaper by Rs.2,800)
- Gold on MCX: Rs.68,500 per 10 grams (cheaper by Rs.4,000)
- Silver: Rs.87,350 per kg (cheaper by Rs.1,650)
- Silver on MCX: Rs.84,275 per kg (cheaper by Rs.4,720)
- Platinum: Rs.28,940 per 10 grams
After the announcement, there was a significant surge in gold and jewellery shares:
- Tribhovandas Bhimji Zaveri's stock increased by 2.79% to Rs.140.20 per share
- Kalyan Jewellers India stock increased by 1.54% to Rs.537.05 per share
This reduction in customs duty is expected to benefit both consumers and the bullion industry. People have already started buying gold and silver and trading jewellery brands’ stocks. However, gold prices will continue to be affected by international economic and geopolitical factors.
Happy shopping! What do you think about this change? Share your thoughts in the comments.
