New York, NY (PRWEB) March 14, 2013
Due to the Indian government raising import taxes on gold, demand in the country, the world’s most prolific consumer for years, has been on the wane in the first few months of 2013. In January, duties were raised by 50%, up to 6% from 4%, in an attempt to curb the country’s voracious appetite for gold that is largely to blame for the mounting current account deficit there. The move has so far kept gold demand in check, but India has yet to move into its major gold buying season, wedding season, which starts next month and will continue until early June. Jewelry for 10 million weddings that are celebrated in the country each year accounts for the majority of gold bought in India. It is not uncommon for $200,000 to be spent on gold for a middle class wedding.
Arthur McGuire, Vice President of Gold Price, says, “India’s hunger for gold has played a major role in the yellow metal’s 12 year bull market, and investors relying on gold to profit and protect wealth can count on this demand to come back soon. This happened last year, too. Import taxes kept demand in India sluggish until wedding season, and the momentum kept going through the second half of the year. Although duties were raised again in January, the gold price is relatively low now, which will most likely cause demand to surge quickly once it is time to start planning weddings and festivals. The gold price will rise in response.”
Gold Price (GoldPrice.net) is a leading precious metals advisor since 1992 with headquarters in New York, California, Texas, Utah, New Mexico and Puerto Rico. Gold Price is also a direct gold and silver dealer, specializing in purchasing, selling and trading physical gold and silver as modern bullion bars/coins and certified rare coins. They offer investors a free award-winning gold starter’s kit by visiting http://www.goldprice.net or calling 1-800-767-1423.