The reason why Indians crave for gold is because consumers buy the yellow metal for auspicious reason during their wedding and festival season, which will start in November and last till January. It is estimated that Indian household currently hold 31,000 tonnes of gold worth a massive USD$1.3 trillion at USD$1400 per ounce. In order to reduce its trade deficit, Indian government has been trying hard to curb gold imports by hiking the metal’s import taxes. Import duties were raised to 6% in late January and then 8% in early June and then subsequently 10% in August. The same tax is also applicable to silver and platinum to fight substitution. Despite these measures, Indians are still buying gold aggressively. The tariffs have only fuelled a boom in gold smuggling!