Smuggled gold has its own price in India

Market traders say the move is an upshot of the spurt in smuggling which has spawned a grey market for retail gold. The difference in rates also indicates the yawning demand supply gap and bristling competition among traders of the precious metal, and goes beyond being just a tool to attract customers.

The South Western state of Kerala boasts of a large number of reputed brands, with the state accounting for a sizeable chunk of the country’s gold market.

Traders state gold holds a significant social status in the South Indian society. ``Gold is used right from birth to death. Many people tend to add powdered gold to the honey that ends up in a newborn baby’s mouth, to ensure the child’s good fortune. At a funeral, mourners are wont to place a gold coin in the mouth of the deceased so that they are not without resources in the afterlife. These practices are not going to go away,'' said Manish Kedia, bullion retailer.

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