http://www.newindianexpress.com/states/tamil-...6/gold-not-s...
SALEM, Tamil Nadu, India -- Black money holders, who have been struggling to convert their money into white, are buying huge amounts of silver bars at high prices. This illegal trade is picking up rapidly in Salem City.
After Prime Minister Narendra Modi announced that 500- and 1,000-rupee notes would have no legal tender status from midnight November 8, the black money holders have been finding various way to change their money into white. Now black money holders, especially in the west zone including 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 toward Salem to buy silver bars by using 500- and 1,000-rupee notes. The Salem district is well known for its silver anklet business. Shevapet in Salem City is the hub for silver business.
Around a thousand silver anklets shops function in the locality. Speaking to the 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 the government will next focus on gold sales, they are afraid that the gold rate will come down drastically in coming days."
There have been reports from around the country that people were buying gold, often at a premium, with the demonetized currencies. Following this, the central government responded by saying it will track jewellers and purchases to crack down on black money holders.
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