Gold touches Rs 50,000 in Mumbai black market

Shiv Kumar

Tribune News Service

Mumbai, November 9

Panic buying of gold coins and jewellery against cash since Tuesday night has pushed up the unofficial prices of the yellow metal to Rs 50,000 per 10 grams.

“Since Tuesday night buyers have been coming to buy gold jewellery with bag loads of cash,” said a jeweller at Zaveri Bazaar in South Mumbai, the hub of India’s gold trade.

Sources said buyers were picking up small pieces of jewellery since they need to produce their PAN number for purchases above Rs 2 lakh. “Many buyers are splitting their purchases into smaller value bills to avoid declaring their purchases to the Income tax authorities,” a jeweller said.

Panic buying began on Tuesday evening as soon as Prime Minister Narendra Modi came on television to announce demonetisation of Rs 500 and Rs 1,000 notes. Many jewellers stayed open till midnight as word spread of the demonetisation drive. Most buyers at Zaveri Bazaar on Tuesday and even early Wednesday hailed from the mercantile Gujarati and Marwadi communities living nearby, said traders. Meanwhile, official prices of gold went up to a three-year high of Rs 31,750 per ten grams gaining Rs 900 overnight.