Budget 2021 with Anil Singhvi: As gold and silver prices crash, IBJA secretary Surendra Mehta reveals reasons behind it

Gold price fell after Finance Minister Nirmala Sitharaman made her Budget 2021 announcements related to bullion. Zee Business Managing Editor Anil Singhvi talked to India Bullion and Jewellers Association Ltd. (IBJA) secretary Surendra Mehta and sought to know the reasons behind the fall.

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Chartered Accountant by profession, Mehta said the finance minister talked about rationalization of import duty on gold and silver, which hints that the duty that was earlier 12.5 % have come down to 10 %. He clarified that it is his assumption and he is yet to see the fine print of the announcement regarding gold and silver. But as far as his understanding goes, duty on gold has come down by 2.5%.  

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IBJA के सेक्रेटरी सुरेंद्र मेहता से जानिए सोने में गिरावट की क्या वजह मान रहा है बाजार#BudgetOnZee #Budget2021 #Gold @surendramehta65 @AnilSinghvi_ pic.twitter.com/uHgrJHDtJS

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Talking about any further impact, Mehta said there is already an impact on MCX. He said the prices of gold fell by Rs 1100 and silver by around Rs 1500 on MCX.  

Zee Business Managing Editor said the reason behind the fall is that the finance minister in her budget speech said that the prices of gold and silver will be rationalized - cut in import duty on gold and silver was announced.  This will help bring down prices of these precious metals in the domestic market and boost exports of gems and jewellery.

"Gold and silver presently attract a basic customs duty of 12.5 per cent. Since the duty was raised from 10 per cent in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, we are rationalising customs duty on gold and silver," Finance Minister Nirmala Sitahraman said while presenting the Union Budget 2021-22.