Sushil Kumar Sinha, the business head for commodities at Karvy Comtrade, discusses the gold market.
q Why are Indians such big buyers of gold?
a Indian consumers generally view gold as a hedge against inflation because the inflation rate in India is very high. Consumers measure the value of gold according to traditions where gold is considered a symbol of wealth and prosperity. Consumers also invest in gold as a part of household savings and a long-term investment to protect wealth. Gold also has a huge social, economical and sentimental significance.
What's the effect of lower prices?
Lower prices will lead to an increase in the demand for gold and support gold prices in the near future. However, the biggest threat to the government's exchequer is the smuggling of gold that could increase due to the arbitrage between the customs paid price and price without the import duty which would be large enough to entice smugglers to trade in gold bars and coins illegally in the country.
What kind of impact are factors including higher import duties having on India's gold market?
India has increased the import duty on gold from 6 per cent to 8 per cent and also forced domestic jewellers to purchase gold on a cash basis. It means that gold jewellers can purchase gold up to the limit of cash available with them. The increase in import duty would also affect gold prices while limiting the purchase of gold in the market due to lower supply and higher demand. Gold imports are expected to fall in June.
What are your expectations going forwards?
It is expected that gold prices might recover in the future as Indian consumers see gold as a hedge against inflation and an investment in household savings, which should support gold prices. The fall of the rupee against the dollar might also extend the gains in gold prices.
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
Russia's Muslim Heartlands
Dominic Rubin, Oxford
The specs
Engine: Twin-turbocharged 4-litre V8
Power: 542bhp
Torque: 770Nm
Transmission: Eight-speed automatic
Price: From Dh1,450,000
On sale: Now
AUSTRALIA SQUAD
Pat Cummins (capt), Scott Boland, Alex Carey, Cameron Green, Marcus Harris, Josh Hazlewood, Travis Head, Josh Inglis, Usman Khawaja, Marnus Labuschagne, Nathan Lyon, Mitchell Marsh, Todd Murphy, Matthew Renshaw, Steve Smith, Mitchell Starc, David Warner
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The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
FROM THE ASHES
Director: Khalid Fahad
Starring: Shaima Al Tayeb, Wafa Muhamad, Hamss Bandar
Rating: 3/5
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
DUBAI BLING: EPISODE 1
Creator: Netflix
Stars: Kris Fade, Ebraheem Al Samadi, Zeina Khoury
Rating: 2/5
The years Ramadan fell in May