Date:03/04/2008 URL: http://www.thehindu.com/2008/04/03/stories/2008040351520300.htm

Tamil Nadu

Ban online trading of gold: chamber

RAJAPALAYAM: The Rajapalayam Chamber of Commerce and Industry has urged the Centre to ban online trading of gold and bar banks from transacting business in gold.

In a memorandum submitted to the Union Minister for Commerce and Industry, the Chamber secretary, S.N. Rama Raju, said that the Government had remained a silent spectator to the phenomenal increase in gold price.

The increase was mainly due to online trading which, he said, was controlled by black money holders by hoarding large quantity of gold, creating an artificial demand.

Besides, the banks that were allowed to transact business in gold without any ceiling on stocking also contributed to the price increase, the memorandum said.

Goldsmiths affected

The price increase had affected thousands of goldsmiths and people in the lower economic strata who could not buy minimum quantity of gold to marry off their daughters.

The association said that a ceiling for stocking should be introduced at all levels of gold trading.