real-time news and commentary for investors
Wednesday, Sep 18
Confusion behind big drop in Indian gold imports
- Ahead of the festival season, India hiked gold import duties another 10-15% this week, raising jewelry import taxes alongside to give domestic jewelers a break. It's the latest in a series of hikes on gold taxes as the country tries to narrow its trade gap by stemming demand for the metal.
- Much has been made of the plummeting in gold imports in August, but this may have been due to a new central bank policy ordering 20% of imported gold be set aside for export, with the remainder going into jewelry. Don't beat yourself up for not being able to figure out what this means. Industry experts can't decipher the rule either, and imports/exports have both frozen in the meantime.
- Gold dipped below $1,300 per ounce overnight, but is now -0.6% at $1,302.
- Gold ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.