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Gold prices go up along with demand as a way to spend unaccounted cash

Posted on: 12/Nov/2016 12:53:34 PM
Many citizens have resorted to buying gold to evade tax on unaccounted money. Jewellery shops across the country have been flooded since Tuesday evening. Most purchases were made in cash. As a result, the value of gold has gone up to Rs 54,000 per 10 gram in the black market while it was around Rs 34,000 per 10 grams in the commodity market.

Reports say that many jewellers are also helping people to legalise their money by providing backdated bills on cash purchases even after the Rs 500 and Rs 1,000 notes were pulled back from circulation. Speaking about this, a senior official of the Gems and Jewellery Trade Council of India said, People with unaccounted money to dispose rushed to purchase gold last night as soon as the news broke. Whatever registered gold was available with limited jewellery houses was sold last night within couple of hours.

Reports say that the government has sought all jewellery stores across the country to send in CCTV camera footage from the night of November 8 onwards. Raids have also been conducted in many jewellery shops and they have been instructed to collect PAN details of all customers.