Indians importing more gold jewellery despite higher duty

India has the world's largest appetite for gold and the country's wedding season is one of the biggest drivers of global demand for the precious metal.

But this year, India's central bank has spoiled the party: Aside from record high import duties on the yellow metal, the Reserve Bank of India also requires importers to set aside 20% of imported gold for export purposes.

The 80:20 scheme appears to have helped: According to one estimate, imports will fall 40% this year.

But this hasn't done much to curb demand, and Indian traders aren't keen on turning away customers.

According to the Hindu Business Line, gold jewellery imports have picked up in recent weeks. It seems that traders are choosing to import gold in this form rather than in bullion bars because jewellery is not subject to the 80:20 rule – but it does have a higher import duty.

Read More: www.mining.com/indians-importing-more-gold-jewellery-despite-higher-duty-76967/