There's some good news for gold buyers in Kerala as prices have fallen again. One pavan of gold now costs ₹1,14,400, down ₹400. However, jewellers are worried that the government's recent hike in import duty will only lead to more smuggling.
Gold prices in Kerala have dropped for the second consecutive day, bringing some relief to buyers. Today, the price per gram fell by ₹50, and a pavan (8 grams) is cheaper by ₹400. With this change, one pavan of gold now costs ₹1,14,400, and one gram is trading at ₹14,300.
This drop comes after a very volatile period for gold. On May 13, prices had suddenly shot up by a massive ₹10,200 after the government increased the import duty on gold. The price even hit this month's high of ₹1,23,120 on that day. Since then, the rates have been fluctuating up and down.
Meanwhile, the Kerala Gold and Silver Merchants Association (KGSMA) has come out against the central government's decision to increase the import duty on gold from 6% to 15%. They argue that while the government's aim is to reduce imports, this move will actually cause a surge in smuggling.
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KGSMA's State General Secretary Adv. Abdul Nazar, President K. Surendran, and Treasurer Krishnadas C.V. explained their reasoning. They said that earlier, when the import duty was 15%, India imported a thousand tonnes of gold. But when the duty was just 6%, imports were below 800 tonnes. They pointed out that smuggling one kilo of gold can now fetch a profit of over ₹20 lakh. If you also count the 3% GST that smugglers avoid paying, their total profit jumps to ₹24 lakh, making it a very attractive illegal business.
Prime Minister's Appeal
The government raised the import duty on gold and silver to control imports. This tough step was taken soon after Prime Minister Narendra Modi appealed to the public to avoid buying gold for one year. He made this request last Sunday. The new rules are aimed at protecting the country's foreign exchange reserves and strengthening the rupee. Most of India's gold demand is met through imports, and the PM's intervention comes at a time when more and more people are buying gold as a safe investment.
A Look at This Month's Gold Prices (per pavan)
May 1 - Morning: ₹1,11,720 | Afternoon: ₹1,10,280 | Evening: ₹1,09,720
May 2 - ₹1,10,680
May 3 - ₹1,10,680
May 4 - Morning: ₹1,10,680 | Afternoon: ₹1,09,720
May 5 - ₹1,09,400 (Lowest price this month)
May 6 - Morning: ₹1,10,960 | Afternoon: ₹1,11,560
May 7 - Morning: ₹1,11,800 | Afternoon: ₹1,12,200
May 8 - ₹1,11,960
May 9 - ₹1,11,720
May 10 - ₹1,11,720
May 11 - Morning: ₹1,11,560 | Evening: ₹1,12,520
May 12 - ₹1,12,920
May 13 - Morning: ₹1,23,220 (Highest price this month) | Afternoon: ₹1,18,800
May 14 - ₹1,19,040
May 15 - Morning: ₹1,17,400 | Afternoon: ₹1,15,600
May 16 - ₹1,14,800
May 17 - ₹1,14,800
May 18 - ₹1,14,400
