Story perspectives

Modi Urges Year-Long Gold Boycott, Jewelers’ Stocks Plunge

5/13/2026

Summary

Modi bans gold

Prime Minister Narendra Modi urged Indians on May 10, 2026, to avoid buying gold for a year to protect foreign-exchange reserves.
India imports over 90% of its 700–800 tonnes annual gold, which fell from about 100 tonnes in Jan 2026 to 15 tonnes in Apr 2026, the lowest in decades.
After the appeal, shares of Titan, Senco Gold and Kalyan Jewellers fell 6.6%, 9.5% and 10.8% respectively on May 11, 2026.

Summary

Governments cure fuel

Rahul Gandhi posted on X that Modi’s austerity appeal proves failure and Congress members called the gold-purchase and travel curbs poor planning.
The International Energy Agency said the Iran-related supply shock is the largest disruption in history, prompting governments to act.
Regional governments, including China and the Philippines, acted by halting fuel exports, declaring emergencies with transport subsidies, imposing fuel rationing and four-day workweeks, and cutting fares by half.

History

Historical Context

In 1973 OPEC, led by Saudi Arabia, raised oil prices after an embargo during the Yom Kippur War, sending world oil from $3 to $12 per barrel (?300% increase) and sparking recession in the United States. The shock taught governments to curb commodity demand, a lesson echoed today as Indian Prime Minister Narendra Modi urges citizens to limit gold purchases to protect foreign-exchange reserves.

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Modi bans gold

Prime Minister Narendra Modi urged Indians on May 10, 2026, to avoid buying gold for a year to protect foreign-exchange reserves.
India imports over 90% of its 700–800 tonnes annual gold, which fell from about 100 tonnes in Jan 2026 to 15 tonnes in Apr 2026, the lowest in decades.
After the appeal, shares of Titan, Senco Gold and Kalyan Jewellers fell 6.6%, 9.5% and 10.8% respectively on May 11, 2026.

1 / 3