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Indian Law To Depress Gold Prices?

|Includes:SPDR Gold Trust ETF (GLD), GLL, SGOL, UGL

Investopedia seems to think a new law in India will put further downward pressure on gold (GLD, SGOL). India is the world's largest importer of gold and this week, the tariff on gold jewellery imports was raised to 15%. It might actually have the opposite effect, if it becomes more attractive to buy the gold in raw form and allow Indian craftsman to make the jewellery.

However, another law passed in July requires 20% of imports to be re-exported. This law caused imports to drop 80% in August. Despite this, the price of gold actually rose 5% that month. I will disagree with the Investopedia article and say the new tariffs are a non-issue.