MADRAS: For the first time in the history of the Madras bullion market, gold price crossed the R.s 5,000 mark Wednesday.
The price of standard gold peaked 5,020 per 10 grams this evening, While 22 carat armament gold had buyers R.s 474 per gram, according C.V Pandurangan, secretary of the Madras jewelers and diamond merchants association.
He said the supply of gold to the bullion market had very drastically dipped, which caused the unprecedented spurt in gold price. The center should take immediate steps to make gold available to meet the demand, he said.
Enquiries with other market sources” revealed that the short supply in gold “was partly due to “unattractive margins” for bringing in gold through “unofficial’ channels. The center extending the Amnesty schemes for foreign exchange remittances and investment in India development bonds, had reportedly made “Hawala’ transactions more Lucrative, the sources said.
Article extracted from this publication >> December 13, 1991
