Festive buying of gold starts in UAE but lags in India

Dubai: Indian expats in the UAE (and the Gulf) have gotten around to making their gold and jewellery purchases during the festive season of Diwali, aiming to make full use of the soft pricing for the metal. But their counterparts in India are yet to get into the full swing of it, according to a leading retailer.

That the current government in India — which took over the reins in May — would bring down import duties, currently at 10 per cent, has come to naught. It means that, on average, buying gold in India is costlier by Dh15 or so on a per gram basis compared to what it would be in Dubai. And each time there are fluctuations in the rupee versus the dollar, there are those benefits to be had from buying here.

“Gold retail sales in India are yet to see that pick up in demand typically expected ahead of Diwali,” said Joy Alukkas of Joyalukkas Group, which has an extensive network in southern India apart from what it has in the Gulf.

“In comparison, there’s been an definite pick-up in volumes in the Gulf and across the board — what has helped is that Indian customs has turned more lenient in what travellers to India can bring into the country.

“For a woman passenger, the upper limit is Rs100,000 (just over Dh6,000) and a family with a couple or more women travellers can take quite a sizable weight into the country. More so, as gold prices have scaled down quite appreciably from their 2010-11 highs.”

For the record, a male passenger can take gold valued up to Rs50,000.