People rushed to buy gold just after demonetisation announcement, gold worth Rs 5,000 crore sold on Nov 8-9
Dec 8, 2016, 12:30 IST
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Prime Minister Narendra Modi declared a war against black money on November 8, when he declared old currency notes of Rs 1000 and Rs 500 as illegal tender. Soon after the announcement, in a bid to convert black money into white, people went in a tizzy to buy gold ornaments and bars.
According Surendra Mehta, national secretary of India Bullion & Jewellers Association (IBJA), jewellers sold 15 tonnes of gold ornaments and bars, worth around Rs 5,000 crore, on the intervening night of November 8 and 9.
IBJA has 2,500 jewellers registered with it from across the country.
"We estimate gold worth Rs 5,000 crore, or around 15 tonnes, was sold between 8 pm on November 8 and 2-3 am the next day, after the PM's demonetisation announcement,” Mehta told ET.
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IBJA is now asking the government to take strict action against erring jewellers because they had brought a "bad, name to the entire trade, Mehta added.
The figure of 15 tonnes is significant as it amounts to over a fifth of the monthly sales of gold in a normal year