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Gold rally gives exit to metal stashed during DeMo

Within weeks after the ban on 500 and 1000-rupee notes was announced in 2016, more than ₹5,000 crore of gold jewellery and bullion were believed to have been purchased with the de-legalised currency bills. Almost overnight, gold prices had shot to ₹40,000 (per 10 grams) as buyers rushed to salvage their cash.
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16 Sep 2020 3 Mins Read 0 comment
Trade sources also attribute the discount to pawned gold forfeiture by stressed households. iStock
Trade sources also attribute the discount to pawned gold forfeiture by stressed households.
Mumbai: The gold that had changed hands four years ago, in a flurry of panic deals on the night of Demonetisation, is now finding its way back into the market. As the price of the yellow metal surged amid a hunt for a safe-haven asset and the uncertainty caused by the Covid-19 pandemic, people who had bought gold to launder
“Forfeiture of part of this could be inflating the discount.” He pegged the average local discount at $15 an ounce (31.1 gm) to the official rate over the past two months. It had widened to $30 a month and a half ago and was as high as $60-72 in April with supply coming to a stand-still after the lockdown.
Mumbai: The gold that had changed hands four years ago, in a flurry of panic deals on the night of Demonetisation, is now finding its way back into the market. As the price of the yellow metal surged amid a hunt for a safe-haven asset and the uncertainty caused by the Covid-19 pandemic, people who had bought gold to launder “Forfeiture of part of this could be inflating the discount.” He pegged the average local discount at $15 an ounce (31.1 gm) to the official rate over the past two months. It had widened to $30 a month and a half ago and was as high as $60-72 in April with supply coming to a stand-still after the lockdown.

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