Gold became costlier as soon as 2000 notes were banned, what is the connection?

Demonetisation has returned once again in the country. Yes, 2000 rupee notes are going to be closed, although this time there is no panic as before, but gold has become expensive as soon as 2000 rupee notes are closed, what is this connection?

Do you remember the demonetisation phase of 2016? People then turned to jewelers to dispose off the demonetised Rs 500 and Rs 1,000 notes. This time 2,000 rupee notes are being taken out of circulation, so gold has become expensive. After all, what is this new connection between demonetisation and gold?

Let us inform that the Reserve Bank of India (RBI) has decided to put pink notes of Rs 2,000 out of circulation. The central bank has given people time till September 30 to exchange notes of up to Rs 2,000 with the bank. However, their legal tender will remain.

Expensive gold connection with jewelers?

This time also people are adopting the strategy of buying gold to exchange 2000 rupee notes. Some of these people will be such that they will have Rs 2000 notes in large quantities. These people may try to get rid of the 2000 rupee notes by changing them to gold in the next 4 months.

Meanwhile, there are reports of increase in demand for gold from jewelers. According to media reports, jewelers in Mumbai's gold market are charging a premium on payments made in Rs 2000 notes. For this, they have increased the price of gold itself.

Gold getting costlier in the market

The price of gold in Mumbai market is around Rs 63,800 per 10 grams including GST. While the price of gold is being recovered at Rs 67,000 per 10 grams on payment in Rs 2,000 notes. Market sources say that after the announcement of the closure of Rs 2,000 note on Friday, the news of premium recovery on gold started coming, although it is expected to come down in a few days.

Similarly, in Surat's gold market, there is news of jewelers charging a premium of 10 percent on gold for receiving payment of Rs.2000. Similarly, in Delhi too, there is news of people buying jewelery from many jewelers by paying Rs 2,000. It also includes branded jewelery chain.

Fear of people changing such notes

People can also turn to real estate to exchange Rs 2,000 notes. But after the demonetisation of 2016, the rules related to it have become stricter. In such a situation, instead of going to banks, people can prefer buying gold or other options.

This includes buying foreign currency from the black market, exchanging Rs 2,000 notes through religious institutions, etc. People can try to exchange notes through these routes to avoid being caught by the tax authorities.

However, in the meantime, RBI has made it clear that there is no limit for exchanging Rs 2,000 notes in bank accounts. Nor is there any kind of restriction on it. On the other hand, people can change Rs 2,000 notes worth Rs 20,000 in a day without going to the bank and without any ID proof or filling the form.