GST impact: Gold investment demand to leapfrog in near term

Enhanced transparency brought in by the introduction of GST said to be the cause

Investment products, including paper gold, bars, and coins, are likely to see their share in the country's overall gold demand leapfrog to 33 per cent, from the current share of nearly 22 per cent, in the coming years due to an increase in the overall transparency in the bullion trade through the implementation of the Goods and Services Tax (GST). 

A World Gold Council (WGC) report estimates that India’s investment gold (bars and coins) demand stood at 72.7 tonne for the January–June period in 2017, compared to 59.8 tonne for the corresponding period last year. Investment gold demand constitutes around