As prices soar, gold seizures by Customs hits all-time high in Chennai

Spiralling gold prices and a sagging economy may have dampened the spirits of both consumers and jewellers. But, there are a few people making the most out of this situation.

As gold prices skyrocketed during FY20, smuggling activity also touched an all-time high. According to data shared by Chennai Customs, Chennai International Airport seized as much as 375 kg of gold in FY20 as against 271 kg seized in the previous year. The seizure, in value terms, had more than doubled to ₹134 crore in FY20 as compared to ₹87 crore a year ago.

The depreciation of the rupee in relation to the dollar and the US-China trade war crisis made investors find a safe haven in the yellow metal, which led to a price hike. In addition, the high customs duty made the legal import of gold costlier. All of these pushed some people to choose the smuggling path.

https://www.thehindubusinessline.com/markets/gold/with-high-gold-prices-smuggling-reached-all-time-high-in-chennai-in-fy20/article31387319.ece