Post-Rs 2,000 note scrap plan, jewellers get more enquiries for gold, silver

Jewellers in India, the world’s second-largest gold consuming country after China, have started receiving more enquiries for purchase of gold or silver immediately after the Reserve Bank of India’s (RBI) announcement to withdraw Rs 2,000 notes from circulation. However, there is no panic buying of the precious metal unlike the situation witnessed in 2016 during demonetisation, jewellers body All India Gem and Jewellery Domestic Council (GJC) has said. 

In fact, in the last two days, the actual gold purchase has been less in exchange of Rs 2,000 notes due to strict Know your Customer (KYC) norms, although sources have said that some jewellers have started charging a 5-10 per cent premium, taking the gold prices to Rs 66,000 per 10 grams level. Currently, gold prices have corrected to around Rs 60,200 per 10 grams level in the country. 

“There have been a lot of inquiries (sic) about purchasing gold or silver with Rs 2,000 notes, hence the higher footfalls on Saturday. However, due to strict KYC norms actual purchase has been less,” apex industry body GJC Chairman Saiyam Mehra has told the PTI. 

There is “no such panic”, and footfalls have also settled down as the RBI has kept a larger window of four months as the deadline for withdrawing the pink notes from the market, he adds. 

On May 19, the RBI had announced withdrawal of Rs 2,000 currency notes from circulation but gave public time till September 30 to either deposit such notes in accounts or exchange them at banks. It has asked banks to stop issuing Rs 2,000 notes with immediate effect. 

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