Gold Premiums in India Double as Supplies Decline on Curbs
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Gold premiums in India, the world’s largest user last year, doubled in the past week as jewelers rushed to secure supplies after a surge in imports this month spurred the central bank to impose fresh curbs on purchases.
The fees paid by jewelers to banks and other importers climbed to about $10 an ounce over the London cash price from as low as $4 an ounce a week earlier, said Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation. The Reserve Bank of India on July 22 made it mandatory for gold importers to set aside 20 percent for re-exports as jewelry.