India, the second largest consumer of gold has seen a rise in its rates due to Iraq crisis.
Here is the timeline showing the fluctuations in gold prices since independence:
1950-1959: The price of gold in 1950 was ₹99 per 10 gm, which remained stagnant until 1953. While it fell to ₹73 per 10 gm, the rates later rose to ₹102 in 1959.
1962: Morarji Desai, the then finance minister introduced the Gold Control Act, which banned trading in gold. He also ordered all the banks to refrain from giving gold loans and the ones already processed had to be returned.
At that time the price of gold was ₹ 119 per 10 gm but it fell in 1964 to ₹ 63 per 10 gm.
1963: The government banned production of gold jewellery above 14 carat. In 1965, a gold bond scheme was launched for unaccounted money with tax immunity to be converted to bonds.
24 August 1968: Gold Control Act was officially launched. Under this act, holding of gold coins and bars had to be converted to jewellery and declared to the authorities. Additionally, ownership in the form of coins and bars was prohibited.
Goldsmiths could not own more than 100 grams of gold and licensed dealers couldn't hold over 2 kgs of gold. They were prohibited from trading with each other, after which gold prices saw a constant surge.
1990: Government abolished the Gold Control Act because of smuggling through unofficial channels, which gave rise to the gold black market.
1992: Imported more than 110 tonnes of gold officially, which has now increased to about 800 tonnes a year.
1997: RBI provided authorization to the commercial banks to import gold from jewelers and exporters for sale or loan. The gold prices fell to ₹ 4700 per 10 gm from previous year's ₹ 5100 per 10 gm.
1999: The government launched Gold Deposit Scheme in September, which utilizes unused gold and provides returns to gold owners, simultaneously reducing India's dependence on the metal.
2000-2013: The gold prices hit ₹ 4,400 per 10 gm in 2000 and rose to ₹ 33,000 per 10 gm in 2013.
2013: The then Finance Minister P.Chidambaram appealed to the citizens not to buy much gold as the value of rupee declines. Thus the gold import duty rose from 2 percent to 10 percent within a year.
2014: The government hiked import tariff value on gold to $411(₹ 24,722) for 10 grams on 16 June due to the Iraq crisis, which has led to a rise in gold prices around the globe. Presently, the price is ₹ 27,700 per 10 gm similar to last year's rates.
