Getting rid of banned notes? Gold for you is at Rs 52,000 per tola

Updated: Nov 11, 2016, 11:59 IST | Faisal Tandel

Mumbai jewellers try to milk the ban announced on Rs 500 and Rs 1,000 currency notes by offering the yellow metal to customers for Rs 16,000 more than the market rate

If it’s banned, it’s on the black market. The latest entrants are Rs 500 and Rs 1,000 notes. And the ones making the most of it are city jewellers.

Moksh Jewellers in Kurla
Moksh Jewellers in Kurla

With those having black cash investing in gold, mid-day found out that jewellery shops in Mumbai, Thane and Navi Mumbai have fixed rates according to the notes people are bringing.

Chandresh Jewellers on SG Barve Marg in Kurla east
Chandresh Jewellers on SG Barve Marg in Kurla east

If a customer has Rs 100 notes or is ready to pay via credit/debit card or cheque, s/he will get gold at Rs 32,000 per tola (10 gm). But for those paying with Rs 500 and Rs 1,000 notes, the price is Rs 48,000 and above.

Also Read: Vivek Kaul: Why Mumbaikars bought gold all night long on a week day

A Thane-based jeweller said, “This is the right time for jewellers to earn. They can manage in banks by showing returns.”

B(u)y the tola
One shop owner, however, said that they don’t fix the black market rate, and that it comes on the website that all jewellers refer to for current rates. He refused to share the name and details of this website.

mid-day visited Chandresh Jewellers on SG Barve Marg in Kurla east. “The rates have been fluctuating since the Prime Minister’s announcement,” said owner Raju Jain.

When asked about the present rate of 1 tola gold, he said, “If you are giving me a cheque or paying via card, it is around Rs 32,000. But if you are here to discard your Rs 500 or Rs 1,000 notes, you will have to pay Rs 48,000.”

“The rate of gold coin is Rs 52,000 per tola. On Thursday morning itself, I sold a 1 kg gold coin at Rs 52,000 per tola,” he added, saying that bargaining will bring the black market rate down to Rs 42,000 but nothing further than that.

Another Kurla jewellery shop owner, Bhavesh Bhai of Moksh Jewellers, too had the same rate. “Hardly anyone has turned up since the ban. A majority of those who are coming want to get rid of their Rs 500 and Rs 1,000 notes. We are offering them gold at Rs 47,000 per tola,” he said.

When mid-day visited Jainam Jewellers in Kurla east, owner Ishwar Jain was worriedly watching the news to know the current situation about the market.

Read Story: 2nd Diwali? Mumbai's jewellers work all night to turn 'black' into gold

“People investing in gold are mostly those trying to turn their black money into white. Why else would you spend such large amounts on the yellow metal?” he said.

The owner of Kamothe’s Palak Jeweller seconded Jain. On Wednesday when mid-day visited the shop, he said, “The rate is Rs 40,000 a tola. If you come tomorrow, it will rise.”

But then there were those wanting nothing to do with the black market.

They removed the jewellery items kept on display, saying only those interested in getting rid of the banned notes have been coming in, and since they don’t want to get into such transactions, they have removed the ornaments.

Rs 32k
Current market rate of per tola gold

Rs 42k
Per tola black market rate after bargaining

Rs 52k
Per tola rate of a gold coin

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