Gold prices top Rs 45,000, reach demonetisation levels

MUMBAI: Gold prices have hit the levels that were prevalent during demonetisation on November 8, when bars, coins and jewellery, among other goods, were purchased at premiums of up to 50 per cent or more, according to certain trade constituents.

On April 9, 24 carat gold quoted at a record high of Rs 45,020 per 10 gram (ex -3% GST), data from trade body India Bullion & Jewellers Association (IBJA) showed.

“Gold, which was around Rs 30,000 per 10 gm back on November 8, was being sold at rates of Rs 40,000-45,000 plus, as per what we heard back then,” said Surendra Mehta, National Secretary, IBJA.

Gold markets across the country remained shut, like other non-essential services, because of the three-week Covid-induced national lockdown through April 14. States such as Maharashtra have extended the lockdown till April end.

The government demonetised Rs 500 and Rs 1000 notes to deal a body blow to the shadow economy. The announcement late on the evening of November 8 caused those with unaccounted wealth to allegedly purchase a bevy of moveable and immovable assets. Gold was one of those.

Jewellers such as Pethe believes that once the lockdown ends, many residents holding jewellery purchased over the years could sell the same for cash. This would be purchased at a discount of 5 per cent or so.