The Mad Dash In India To Buy Gold

With a decade-low tariff in place and both the festive and wedding seasons approaching, there is expected to be a mad dash for gold in India this year, according to a new report from Nikkei.

The country is the world’s second-largest gold consumer after China. India’s festival and wedding season begins Thursday, leading up to Diwali on Nov. 1. During this auspicious period, gold purchases surge as it symbolizes luck and financial security. Gold is also a popular gift for brides and families during weddings.

India saw gold imports surge to a record $10.1 billion in August—more than double compared to a year ago and triple July’s $3.1 billion—according to the Indian Commerce Ministry.

The Nikkei report says that the spike followed the government’s late-July decision to cut import taxes on gold and gold dore, a semi-pure alloy, by 9%. The duties now stand at 6% for gold and 5.35% for gold dore, the lowest rates since June 2013, after remaining above 10% for over a decade.