Gold Buying Rush Due To Rs 2,000 Notes Withdrawal? What Jewellers Say
NDTV
The 2016 demonetisation saw panic buying of gold, a trusted investment tool for middle-class Indians that was at half of its current price.
The central bank's move to withdraw Rs 2,000 notes from circulation saw a marginal rise in footfalls at jewellery shops. But the situation is nowhere near to 2016 when Rs 500 and Rs 1,000 notes ceased to be legal tenders in India, say jewellers.
The Reserve Bank of India made the surprise move on Friday to take back Rs 2,000 notes in exchange for lower denomination ones. This differs from the 2016 exercise as the Rs 2,000 notes will remain legal tenders.
Back then, demonetisation saw panic buying of the precious yellow metal, a trusted investment tool for middle-class Indians that was at half of its current prices. But the situation this time is different, claims a top jewellers body.
"There's no huge rush, only a marginal increase in customers. The demand isn't like the 2016 demonetisation. That's because this is not a note ban, but a slow phase-out of the (Rs 2,000) notes," Surendra Mehta, national secretary at India Bullion and Jewellers Association Ltd, said.
