Gold not safe enough, hoarders opt for silver bars

This illegal trade is picking up very rapidly in Salem City.
A pile of gold bars.
A pile of gold bars.

SALEM: Black money holders, who have been struggling to convert their money into white, are now buying huge amount of silvers bars at high prices. This illegal trade is picking up very rapidly in Salem City.

After Prime Minister Narendra Modi announced that Rs 500 and Rs 1,000 currencies have no legal tender from midnight of November 8, the black money holders have been finding various way to change their money into white. Now, black money holders, especially in west zone consisting Salem, Dharmapuri, Namakkal, Krishnagiri, Erode, Tirupur, Coimbatore and The Nilgiris districts have turned their eyes on silver bars.
Particularly, black money holders in districts around Salem are now heading towards Salem to buy silver bars by using Rs 500 and Rs 1,000 notes. Salem district is well known for silver anklet business. Shevapet in Salem City is the hub for silver business.

Around 1,000 silver anklets shops function in the locality. Speaking to Express, a small silver anklet shop owner said, “After demonetisation, most of the black money holders in and around Salem bought gold bars. But, after information spread that government will next focus on gold sales, they are afraid that the gold rate will come down drastically in the coming days.”
There have been reports from around the country that people were buying gold, often at a premium, with the demonetised currencies. Following this, the Central government responded saying they will track jewellers and purchases to crack down on   black money holders.

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The New Indian Express