Gold smuggling back on track as cash availability improves

Gold smuggling has been on the rise after government increased the import duty on it

Gold smuggling had taken a back seat after the demonetisation announcement on November 8, as cash availability was hit. With the latter situation reversing, smuggling has also increased.

According to GFMS, the research and consultancy company for precious metals, supply of smuggled gold came under stress between November 2016 and mid-March of 2017. Supplies from this source were estimated at close to 1.3 tonnes a week in the four quarter of 2016, rising to 1.9 tonnes a week in the later weeks of first quarter this year. This means eight to 10 tonnes a month is entering India through 'unofficial channels'.

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