Silver Prices To See A Dip As Customs Duty Slashed To 6%; Stocks Surge After Budget 2024 Proposal

Finance Minister Nirmala Sitharaman reduced customs duty on gold, silver, and platinum to 6% in the Union Budget 2024-25, providing relief to buyers and the jewellery industry.

Silver prices had already seen a decline, falling by more than Rs 1,350 per kg last week.

Source : ABPLIVE AI

UNION BUDGET 2024-25: Finance Minister Nirmala Sitharaman Tuesday presented her seventh Union Budget, and the first in the Narendra Modi-led NDA government's third consecutive term. In a welcome surprise for those investing in precious metals, the minister in her budget speech in the Lok Sabha said there will be a reduction in the customs duty on silver, besides gold and platinum. With the reduction, silver prices are expected to see a notable decrease.

Customs Duty Reduced To 6%

In the full budget for financial year 2024-25, Sitharaman proposed to reduce the customs duty on both gold and silver to 6 percent. For platinum, the reduction in the customs duty will be 6.4 percent. Providing relief to buyers and investors, the step is expected to lower the prices of gold, silver, and platinum, which have seen massive highs in past some time.

A reduction in the customs duty on precious metals has been a long pending demand of jewellery traders. The rate of customs duty on these metals currently is 15 percent, which according to the traders was excessively high and proved to be a significant financial burden. 

Ahead of the Union Budget, silver prices already saw a sharp decline on Friday, falling by more than Rs 1,350 to Rs 90,418 per kilogram. On Thursday, silver had closed at ₹91,772.

Shares Of Gold And Jewellery Retailers Surged

The record-high prices of gold and silver have had an impact on the demand, particularly for jewellery. Several businessmen had noted a dip in sales even during peak seasons. The gems and jewellery industry now expects to see a resurgence in the business.

Shares of gold and jewellery retailers surged on Tuesday after the budget announcement. On the BSE, the stock of Senco Gold shot up to 6.16% to trade at Rs 1,000.80 per share on the bourse, while Rajesh Exports stock jumped 5.49 per cent to Rs 313.90, and PC Jeweller 5 per cent to Rs 74.16, which is its upper circuit limit, news agency PTI reported.

Titan Company shares climbed 3.66% to Rs 3,371.65, Tribhovandas Bhimhji Zaveri 2.79% to Rs 140.20, and Kalyan Jewellers India surged 1.54% to Rs 537.05 apiece.

ALSO READ ON ABP LIVE | Gold To Be Cheaper: Relief For Gold Buyers As Budget 2024-25 Reduces Customs Duty