Gold, silver, and platinum jewellery to get cheaper after duty cut in Union Budget 2024
Jewellery company shares rise after Finance Minister Nirmala Sitharaman cuts down Basic Customs Duty (BCD) on precious metals like gold, silver, and platinum.
Finance Minister Nirmala Sitharaman announced a cut on customs duty on precious metals like gold, silver, and platinum in the Union Budget 2024 presented on July 23.
This will bring down the prices of jewellery made with such metals The import duty on gold and silver is down to 6% now, compared to 15% earlier. Platinum import duty is now down to 6.4% from 15.4% earlier. (HT)
How much has basic custom duty (BCD) on precious metals ben brought down in the Union BUdget 2024?
The import duty on gold and silver is down to 6% now, compared to 15% earlier. Platinum import duty is now down to 6.4% from 15.4% earlier.
How much will gold, silver, and platinum prices be from now on?
According to Gift City Nifty, 24-carat gold will become cheaper by ₹2,800, reducing the price to ₹72,700 per 10 grams. Silver will drop by ₹1,650 to ₹87,350 per kg, and platinum is expected to cost ₹28,940 per 10 grams. Several manufacturers have already started passing on the budget duty cuts to customers, resulting in lower silver prices.
Impact of the New Duty Cuts
The reduction in import duty on gold relieves consumers and boosts gold demand, creating jobs for artisans. MP Ahammed, Chairman of Malabar Gold & Diamonds, emphasized that high import duty often increases gold smuggling, which hampers the organized retail gold trade and results in revenue losses for the government. The duty cut is also expected to reduce gold smuggling.
Stock Market Reaction
Shares of gold and jewelry companies have surged since the announcement, reflecting positive market sentiment.
Kalyan Jewellers India Ltd is up 5.15%, trading at ₹581.30 on the BSE, Tribhovandas Bhimhji Zaveri Ltd is up 2.03%, trading at ₹158.45, Titan Company Limited Ltd is up 1.24%, trading at ₹3,511.15, Rajesh Exports Ltd is up 2.47%, trading at ₹324.15 and Senco Gold Ltd is up 0.23%, trading at ₹989.85.