Extend compulsory gold 'Hallmarking' by further 2 yrs: CAIT

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SME Times News Bureau | 23 Jul, 2020
Citing higher prices and low supply, the Confederation of All India Traders on Thursday urged the Centre to extend the provision for compulsory gold Hallmarking by two years, so that leftover stock can enter the market.

On Thursday, gold prices went up to Rs 51,500 per 10 gram, while silver ended at Rs 62,000 per kg, CAIT said adding that the safe asset class has gained demand as an outcome of the Covid-19 induced economic turbulence.

Accordingly, the confederation expects a sustained demand for gold and silver during the festive season starting from Raksha Bandhan on August 3.

The confederation expects gold prices to touch Rs 55,000 per 10 grams on Diwali.

According to Praveen Khandelwal, Secretary General, CAIT and Pankaj Arora, National Convenor of All India Jewelers and Goldsmith Federation, silver price is expected to be in a range of Rs 72,000 to Rs 75,000 per kilogram.

He was quoted as saying in a statement: "Gold has always been the best and safest choice of investment for the customers as gold prices generally keep on increasing whereas on the other hand, it is also the most important invest ment for traders which is quite safe."

Prior to the lockdown, gold prices stood at Rs 41,000 per 10 grams and that of silver was at Rs 40,000 per kg and now in a period of just 4 months there is an increase of 28-30 per cent in gold and in silver the increase is of about 45 per cent, he said.

The confederation said that to allow the jewellers to liquidate their old stocks, the Centre should provide a further extension of 2 years, in the view of Covid-19 disruption.

Earlier, the Centre had made 'Hallmarking' on every gold item compulsory from January 15, 2021.

"The government gave a time of one year to the Jewellers to liquidate their old stock. However, due to Covid-19, trading activities across country got highly disturbed and virtually there is no sale since February which deprived the jewellers to liquidate their old stock," the statement said.

"Jewellers would be needing a time of two years to liquidate the old stocks and to comply with the provisions of 'Hallmark'."