Gold has performed well rising from $1,243/oz at the start of the month to US$1,318/oz currently

Gold has performed well rising from $1,243/oz at the start of the month to US$1,318/oz currently. Factors driving gold include unrest in the Ukraine and Iran plus concerns over inflation longer term. In the short term upside exists from potential changes to the 80/20 rule in India where a restricted number of importers were allowed to import gold on the condition that 20% would be re-exported as finished jewellery. The rule was implemented in August 2013 and have caused imports to slump (down 45% in Q1 2014 to 45t). Additionally the government imposed a 10% import duty on gold (up from 4%). Market commentary indicates potential exists for the 80/20 rule to be relaxed and import duties reduced. Changes of this nature may see gold imports surge into India putting further upward pressure on gold price.


1 topic

Fifteen years as a sell side analyst (2000-2015) with Petra Capital, Merrill Lynch and Shaw Stockbroking covering small, mid and large cap companies. Geologist with 6 years experience (1995-2000) in the mining industry comprising roles with...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.