RBI bans gold imports with bank credit-Very bad news for Gold

• RBI banned import of gold by domestic consumers through bank credit and has made overseas purchase of the precious metal a cash and carry business. 

• The move will nearly cripple retail jewellery trade who get credit to buy gold from abroad.

• More than 10% fo jewellery will be affected and will see gold demand drop to 10% yoy.

• India is biggest importer of Gold in the world and the rising Gold import has caused the CAD to increase drastically.

• Govt and RBI are trying frantically to bring down Gold import to reduce CAD and stop the rupee Falling