The Union Budget 2019 has been announced and it is one of the most impactful budgets our country has ever seen. Prithviraj Kothari
has taken this opportunity to state his opinions about this year’s budget. He has just been appointed as the national president of The Indian Bullion and Jewellers’ Association. Who would be a perfect person for having an opinion about Bullion Sector than someone who is famously known as The Bullion King of India? Hear from the very own bullion king of India
about what is his take on budget 2019
International markets didn’t witness much volatility as US market remained closed on 4th July over Independence Day.Now there are 2 points to be noted-
Firstly, the US DOW is at life’s high at 27000 as the plunging yields are now at 1.94% US 10y. This indicates that the rate cut is bound to happen soon.
Secondly, the key number comes in from US payroll at 6.00pm IST. The Fed meet and broader expectation of 162k vs. last times 75k. Moreover, unemployment rate is expected to be at a decade’s high.
Till then the market is expected to be trading in a narrow range.
As far as domestic markets are concerned, all eyes were on the much-awaited budget, well named as Modi 2.0 budget.A clean win this election for our respected PM Modi
clearly indicates that the public has hopes with this government and expects it to work for the betterment of our country. Similar to these lines, the common man also had many expectations from this budget with respect to taxation, water management, farmer loans, and many other critical issues.
Even the gem, jewellery and gold industry had expectations that this budget would bring some relief to the sector where duty structure is concerned.
What was need was that the government should give a thought on how gold should be treated and how it should be classified into asset class. Once gold is classified into an asset class then other products like Mutual Funds, Insurance Fund, Pension funds should be allowed to invest into the yellow metal. The dollar-rupee fluctuation can be hedged and interest rate can be covered on a large scale.
Another need of the hour was to have a more organized gold market. Introduction of a trading platform/exchange to trade gold and all transactions should take place only on this platform. This would bring about transparency in its pricing, set benchmark prices and would benefit the end consumer on a large scale.
Gold has an import duty of 10 percent, and market players wanted it to be pulled down to 4 percent to boost demand. But the government has proposed to increase the duty to 12.5 percent to mobilize resources
. We need to wait and see how markets have accepted this rise in duty and what will be their reaction.