Reduction of customs duty on gold!? Invest in Gold..!?

The basic customs duty on gold, silver, and platinum will be reduced from 15% to 6% in Budget 2024-2025. Due to this, the prices of gold and silver products have decreased. This is the best time to invest in gold. Here's what the experts have to say. The BJP-led National Democratic Alliance, which won the recent lok sabha elections, has formed the government for the third time. Subsequently, Union Finance minister Nirmala Sitharaman presented the budget for the current year 2024-25. Out of which, basic customs duty on precious metals, gold/silver, and gold and silver bullion, coins have been reduced from 15 percent to 6 percent. Customs duty on platinum has been reduced to 6.4 percent. Experts consider the cut in customs duty on gold and silver to be undoubtedly an auspicious time for investors. It is said that this will lead to a decrease in the price of gold and this is the best time for those who want to invest in gold.

Basic customs duty on gold and silver bullion coins has been reduced from 15 percent to 6 percent. The duty on gold and silver ores has also been reduced from 14.35 percent to 5.35 percent.
Impact of customs duty reduction

Falling gold prices: gold prices fell immediately following the presentation of the budget. This is very good for investors.

Increasing demand: Due to the fall in the price of gold, demand for gold has increased for investment and consumption purposes.

Price Volatility: While the tax cut is a positive factor, the price of gold is determined by various factors such as global economic conditions, geopolitical events, and investor sentiment. Hence, gold prices will continue to fluctuate.

Is it a good idea to invest in gold now?

Whether gold is the right investment for you depends on your personal financial goals, risk of financial loss, and investment horizon. Vikas Singh, MD & CEO of MMTC-PAMP said that the reduction in duty on gold is a welcome step. This will reduce the retail price of gold jewelry and curb the counterfeit market, he said. This tax cut is expected to contribute substantially to the government's exchequer and facilitate India's growth with gold at its core," Singh said. raghavendra Nath, MD, Ladderup Wealth Management, said the reduction in customs duties on gold and silver is expected to benefit domestic companies.

Tax reduction - welcoming industry:

The move by the bjp government has been welcomed by the gems and jewelry industry, which it says will reduce input costs, increase value addition, promote export competitiveness, and increase domestic production.
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Sowmiya Sriram

24/07/2024 09:32 PM