India's Gold Market Sees Surge in Under-the-Counter Cash Sales

India's gold market is booming, but not in the way you might expect. High prices and taxes are driving buyers to make under-the-counter cash sales, where bullion and jewelry change hands without invoices that can be traced by authorities.

This practice, known as buying off the books with cash, can shave up to 6% from prevailing market prices for bulk buyers, according to five people familiar with the trade. By accepting cash, dealers can sidestep taxes and pass part of the savings on to customers.

High gold prices have become a concern for many Indians, who see it as an essential store of value in times of economic uncertainty. The steep taxes imposed by the government are making it even more expensive for people to purchase gold through traditional channels.