India Gold Jewelry Demand Falls 19 Percent

Gold jewelry demand in India dropped 19 percent in the first quarter of 2012, while gold investment demand plummeted 46 percent during the same period.

The horribly inefficient and anti-business Indian government announced it's going to slap a 10 percent duty on non-standard gold and gold jewelery, and another 4 percent import tax on bullion.

In response to the plans, Indian jewelers participated in a nation-wide strike for three weeks to protest the proposed actions.

This has created a volatile gold market in India, resulting in bullion dealers allowing their stock to contract because of the unknown consequences of the government interference in the market place.

After the uproar the Indian government backed down on the 10 percent excise duty on jewelry that isn't branded.