Official Indian gold demand fall 80% in May, according to a trade ministry official cited by the WSJ. They examine the rise of illegal gold imports as the country raises taxes on gold in an effort to boost the rupee.
That might not mean that actual imports are down, cases of gold smuggling are up 10 fold and there is something to be said for people wanting what they can’t have.
They also note this interesting tidbit:
Plentiful monsoon rains and an ample harvest are expected to drive up demand from farmers in the second half of the year, during the height of the festival season, Mr. Somasunderam said.
They also an incredible instance of the brilliance of smugglers.
In June, a man was stopped at customs while carrying cardboard boxes containing household appliances, such as a television and a food blender. A seemingly excessive number of staples on the boxes aroused suspicion. On closer scrutiny, customs officers discovered that the staples were made of solid gold, weighing 24.3 troy ounces in total, worth around two million rupees, the second Revenue Intelligence official said.
