Salient to Investors:

India may increase import taxes for a second time in 2013 to narrow a widening current-account deficit, 80 percent of which is due to gold imports, curbing demand for gold in jewelry and investment.

Monal Thakkar at importer Amrapali said increasing the duty will encourage smuggling keeping India as the number one or number two importer.

Chirag Mehta at Quantum Asset Mgmt said you cannot drive away a habit of decades together, and you have to get people off the obsession by getting gold consumption into ETFs and other products.

Read the full article at http://www.bloomberg.com/news/2013-02-21/india-seen-boosting-gold-import-duty-second-time-to-cut-deficit.html

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