Do you know the hidden secret of increasing the GOLD Import Duty? You can’t imagine.

 16^th July 2022

Do you know the hidden secret of increasing the GOLD Import Duty? You can’t imagine.

Dear Fellow Investors,

Namaste! Our post on Feminine Mystery is a super hit and our woman readers appreciated it as they could resonate with the same immediately. Today I am going to talk about some real surprises to the readers. Recently Government increased the Gold Import Duty by 5%. Making it 15% in total. With 3% GST, the average gold buyer pays 18% tax to the government. Normal thinking is that they want to curb the gold imports. The facts are really different.

Do you know about Sovereign Gold Bond?

Since 2015, the government launched the Gold Bond Scheme. We have written many posts on the same. The last one was really eye-opening to many readers.

The last post was written on 5^th February 2022. It is giving the real picture of the bond.

Government-backed Schemes which are not supported ... https://bestofhiteshparikh.blogspot.com/2022/02/government-backed-schemes-which-are-not.html?spref=tw…

2:45 PM · Jul 15, 2022·

You must read this post.

How much total money is generated by such a Bond?

As per our FM in the Parliament, the figure was Rs.31290/- Crs as of August 10, 2021. After that also many issues would have come. Let us assume it is just 31290 Crs only.

This is their BORROWED amount and not the market value. First Bond was issued at Rs.2680 per gram and now the current series is being sold at Rs.4790/ per gram something. It is safe to assume that the Government average issue price would be around Rs.3800 per gram.

The current Gold price is 25% higher than the Rs.3800 per gram. It means the DEBT in the RBI books for the BONDS is Rs.40000 Cr something for the CAPITAL Account and would be at least Rs.5000 Crs for interest at 2.5% for so many years. So, the GOVERNMENT has to pay close to Rs.45000 Crs to the investors or maybe more. (as I have not included the issues after August 2021 in my calculations).

The first bonds are due for redemption in 2023!! What’s more, BONDS can be redeemed after 5 years. So, if the Gold prices go down – which has really gone down. At USD 1700 an ounce, the gold price is Rs.4387/ per gram even at Rs.80 per dollar. If the dollar is at Rs.75, the price would have been Rs.4110 per gram.

Thanks to the taxation the poor populations are ending up paying Rs.10000 per gram as TAX. After paying such a heavy TAX – we are asked to pay the WEALTH TAX!! God save us from these politicians. They are looting the people. It is really hurting that they are looting us in the name of support to the country but they are having a 7-star lifestyle at our cost. Borrowing from PETER to pay to the PAUL is the game they are playing.

What is the REAL GAME?

If the prices come down to Rs.4400 – which is the real price – there would be heavy redemption pressures on the government plus they will not be able to generate new money from the new bond series.

To avoid the same, they thought out a two-way plan. To generate the new taxation income by way of increasing the import duty and to generate the money by selling the BOND.

Some may think that Rs.45000 Crs is a small amount. For them look at the shame the government had to face by selling the LIC issue. To do further DISINVESTMENT is not going to be helpful looking at the government companies' TRACK RECORD. So, to keep the money they have already taken is the biggest challenge for them now.

What NEXT?

To be in the investment GAME – you have to think differently than the MASSES and MEDIA, think Holistically, and think way ahead of the market events.

With the grace of my GURU, Destiny Management is able to do all three thinking for their followers.

Accuracy is our specialty.

If you need help in investing or managing your personal destiny - you are most welcome to approach us.

Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.

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Hitesh Parikh.