High Gold Prices Fuel Rise in India’s Informal Gold Market
What Happened
Rising gold prices and tax-related costs are driving more buyers and sellers towards cash-based, off-the-books gold transactions in India. Industry participants say these under-the-counter deals help avoid taxes and reporting requirements, allowing gold to be traded at lower prices than through official channels.
Key Takeaways
The shift towards informal gold trading could hurt tax collections and transparency in the bullion market, even as strong demand for gold persists despite record-high prices.