Where To Sell Your Gold?
August 30, 2013 1 Comment
Perhaps you wish to book profit now that the price of gold has risen again?Perhaps you need cash urgently in these hard times of tight liquidity.Or perhaps you just want new patterns for your wardrobe?Or perhaps you are preparing for a daughter’s wedding?Then the question is simply where to sell your old or scrap gold.
Obviously the answer is the person who will give you the most for your gold.
In Mumbai,a good place to go to is Jugraj Kantilal & Co.It is a well-known name in the bullion business in Zaveri Bazar. The private entity deals primarily in scrap. They buy old jewellery and then have it refined and then sell again it again in the market. This is a family owned business spanning seven generations. They handle some 100 kgs of scrap a week.
Here is the street address of the shop:155, Shop No 1, Bherumal House, Opposite L K Market, Sheikh Memon Street, Zaveri Bazar-Kalbadevi, Mumbai – 400002
Due to import restrictions on gold,and a need to export ornaments before importing gold,jewellers have now turned to scrap to provide raw materials,so now is a good time to sell gold if you need to.
Swaminathan S A Aiyar is always well worth listening to,This piece by him is superlative and well worth reading,Do pass it around.There are too many people pretending that everything is fine or will be so in the near future.Unless we accept that there is a problem and a serious one,we are unlikely to go looking for solutions.
Even after independence in 1947,the Indian Rupee was still pegged to the British Pound. The peg to the Pound was at INR 13.33 to a Pound which itself was pegged to USD 4.03. That means, officially speaking the USD to INR rate would be closer to Rs 4. In 1966,the Rupee was devalued and was now directly pegged to the US dollar at INR 7.50 per Dollar. Till 1966, the Indian currency, which was pegged to the British pound, was an officially or unofficially acceptable tender over a large part of Asia and Africa, from Beirut to Hong Kong.After the devaluation, the Rupee suddenly turned a global pariah, with few takers anywhere.Exports did not surge as expected and Indian financial prestige suffered even further.
Under the Indian tax law, long-term capital gains on listed equity shares (capital gains when there is at least a year’s gap between the time a share is bought and when it is sold) is tax-free. This fact is used to launder money as explained by Prashant Kumar Thakur in his book ‘Tax Evasion through Shares’.For example,a broker and his client could strike a deal whereby the broker sells shares in a penny stock to his client for a low price, say a few rupees.The catch here is that the contract note issued to the client is backdated to a year earlier. In the interim, the broker has manipulated the price of the stock up through circular trading — two or more brokers circulate the stock between them each selling at a higher price than earlier. After the client has bought the shares for a few rupees each, he transfers physical cash to the broker who then routes it through a range of accounts. In the final step, the broker ‘buys’ the shares back from his client at the higher price, locking in a long-term capital gain. Essentially, the broker has routed the client’s own money back to him, with the advantage that the client can show this as a legitimate capital gain in his tax return — a gain which is tax free.For this purpose,many CAs control a clutch of listed companies each. 
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