Buying gold jewellery in Oman to benefit Indians

MUSCAT, JULY 13 – Despite a spike in the prices, buying gold jewellery in the Sultanate and in the GCC will be beneficial to Indians living in these countries. The advantage follows the recent hike in the customs duty on gold and precious metals to 12.5 per cent announced in the country’s union budget. The prices have already reached at multi-year highs in India, which is the world’s second biggest gold consumer after China, due to a weak rupee and higher international prices.
“This will encourage more people to buy gold from overseas”, opines Abdul Salam K P, the group executive director of Malabar Group, the parent company of Malabar Gold and Diamonds.
According to him, the revised duty structure will help a customer save more than RO 2.25 (400 Indian rupees) per gram on gold purchases from GCC countries.
“This will definitely encourage bulk buyers, especially on wedding related purchases, to visit Muscat or any of these markets. If a family of four visits and brings back jewellery in a reasonable quantity, they can cover their trip cost easily. They also have the additional benefit of a much wider choice from international jewellery”, he said.
He said that even the most popular designs and artefacts of India will be much cheaper in Oman, other GCC states, Singapore and Malaysia.
While price of one gram 22 carat gold closed at RO 17.400, the prices of 24 carat was traded at RO 18.050.
Globally, gold prices rose to a one-week high, extending gains from the previous session after US Federal Reserve Chairman Jerome Powell’s dovish remarks bolstered expectations of an interest rate cut this month,
Gold prices edged up by Rs 74 to Rs 34,775 per 10 gram at futures trade on July 12 on firm demand by local jewellers at the spot market.
In India, the prices edged up by Rs 74 to Rs 34,775 per 10 gram at futures trade India on Friday.
The current difference in price as compared to India is because of the presence of the increased customs duty of 12.5 per cent, as well as other taxes, which hover at around three to four per cent.
However, in the Gulf countries, gold bullion is zero rated for tax.
“People from the Indian subcontinent still believe gold is the ideal investment compared to other options,” Abdul Salam added.
As a substance with high market liquidity, it can be easily sold without having to alter the price. In addition, it is a movable asset whose value does not witness depreciation with uncertain economies. So, this price advantage will be beneficial for those who buy gold as an investment, he said.