Know why gold banking seems very important for India's gold market?
Friday - November 1, 2019 2:11 pm ,
Category : WTN SPECIAL
Soon gold bank can open in India
Bullion banking can change the condition of the Indian gold market
NOV 01 (WTN) - Gold Bank! You must have thought strange that a gold bank. If we tell you gold banks are going to open in the country in the coming time, then you must be wondering what are the gold banks and how do they work, then let us tell you in detail about it. First of all, for your information, let us know that the World Gold Council (WGC) has advised the Government of India to start bullion banking in the country in a phased manner.
Actually, the WGC has made this suggestion so that India's huge gold market can be organized and made transparent. For your information, let us know that after China, India is the second-largest consumer of gold. China consumes around 984 MT of gold every year. On the other hand, India consumes about 849 MT of gold every year. As you know, gold in India is known as a status symbol and in India and the highest consumption of gold is in making jewelry.
According to statistics, India is the second-largest gold consumer country in the world, but still, there are many challenges facing the gold market in India. The biggest challenge of the Indian gold market is the lack of quality assurance of gold. At the same time, the Indian gold market is still unorganized due to which the Indian gold market is unable to compete with international markets and for that reason, it is in a weak state. Experts believe that bullion banking i.e. gold banking can be a very good way to deal with all such problems.
It is believed that if gold banking starts in India, it will enable India's gold market to find its place in major global and regional markets. It is not that gold banking is anything new for the Modi Government. The introduction of bullion banking in India is said to be an important part of the gold policy and the Modi Government has been preparing to introduce it for quite some time. It is being said that gold banking in India can be started anytime.
Actually, the Modi Government is considering introducing this policy with the aim of making gold an asset class. In view of India's huge gold market, the World Gold Council has prepared a detailed report on the need for bullion banking (gold banking) in India. It is being said that this report may soon be submitted to the Ministry of Finance, Reserve Bank of India and SEBI (Securities and Exchange Board of India).
In terms of India, gold banking can bring a lot of new changes to India's economy. For your information, let us know that gold is the best liquid asset class i.e. gold can be easily redeemed in cash. Gold banking and bullion market must be new for India, but in many countries including China, the UK, the USA, and Switzerland, the bullion market is fully functioning and organized.
In these countries, people reach the bullion market through bullion banking. Traditionally, the bullion market was dominated by the UK and the US and mainly global banks provided these services here. But the emergence of an organized market in China has brought a new change in the system. As we told you earlier, gold is the most consumed in China. In such a situation, a large number of Chinese banks also have a stake in the bullion market.
Now let's talk about the gold market of India, although India is the number two country in the world in terms of gold consumption, in India, gold is mostly used for making jewelry. But despite being the second-largest gold market in the world, bullion banking in India is still in its infancy and is offering limited services. This includes services such as the sale of gold jewelry, sale of gold coins and loans in exchange for jewelry. But these services are only counted in the non-core service in the mainstream of the bullion banking industry.
Now let us tell you how the gold bank will work. Through bullion banking or gold banking, common people can take a loan in exchange for gold or then give a loan to someone. At the same time, gold can also be invested in bullion banking. Moreover, gold can also be traded like a stock in it. Just as bullion banking is currently the most used for investment worldwide, bullion banking will be used mostly for investment in India too.
Bullion banking will bring many benefits to the common people. For example, if someone wants to sell his gold, here he will be able to sell his gold at the right price based on the quality of the gold. While at the time of selling gold, local jewelers often buy gold at a lower price by questioning the quality of gold. At the same time, anytime and anywhere when money is needed, you can get money easily through bullion banking. At the same time, the gold market in bullion banking will be fully organized, in such a way, gold will remain in Demat like shares and whenever someone needs money, he can get money by selling gold.
NOV 01 (WTN) - Gold Bank! You must have thought strange that a gold bank. If we tell you gold banks are going to open in the country in the coming time, then you must be wondering what are the gold banks and how do they work, then let us tell you in detail about it. First of all, for your information, let us know that the World Gold Council (WGC) has advised the Government of India to start bullion banking in the country in a phased manner.
Actually, the WGC has made this suggestion so that India's huge gold market can be organized and made transparent. For your information, let us know that after China, India is the second-largest consumer of gold. China consumes around 984 MT of gold every year. On the other hand, India consumes about 849 MT of gold every year. As you know, gold in India is known as a status symbol and in India and the highest consumption of gold is in making jewelry.
According to statistics, India is the second-largest gold consumer country in the world, but still, there are many challenges facing the gold market in India. The biggest challenge of the Indian gold market is the lack of quality assurance of gold. At the same time, the Indian gold market is still unorganized due to which the Indian gold market is unable to compete with international markets and for that reason, it is in a weak state. Experts believe that bullion banking i.e. gold banking can be a very good way to deal with all such problems.
It is believed that if gold banking starts in India, it will enable India's gold market to find its place in major global and regional markets. It is not that gold banking is anything new for the Modi Government. The introduction of bullion banking in India is said to be an important part of the gold policy and the Modi Government has been preparing to introduce it for quite some time. It is being said that gold banking in India can be started anytime.
Actually, the Modi Government is considering introducing this policy with the aim of making gold an asset class. In view of India's huge gold market, the World Gold Council has prepared a detailed report on the need for bullion banking (gold banking) in India. It is being said that this report may soon be submitted to the Ministry of Finance, Reserve Bank of India and SEBI (Securities and Exchange Board of India).
In terms of India, gold banking can bring a lot of new changes to India's economy. For your information, let us know that gold is the best liquid asset class i.e. gold can be easily redeemed in cash. Gold banking and bullion market must be new for India, but in many countries including China, the UK, the USA, and Switzerland, the bullion market is fully functioning and organized.
In these countries, people reach the bullion market through bullion banking. Traditionally, the bullion market was dominated by the UK and the US and mainly global banks provided these services here. But the emergence of an organized market in China has brought a new change in the system. As we told you earlier, gold is the most consumed in China. In such a situation, a large number of Chinese banks also have a stake in the bullion market.
Now let's talk about the gold market of India, although India is the number two country in the world in terms of gold consumption, in India, gold is mostly used for making jewelry. But despite being the second-largest gold market in the world, bullion banking in India is still in its infancy and is offering limited services. This includes services such as the sale of gold jewelry, sale of gold coins and loans in exchange for jewelry. But these services are only counted in the non-core service in the mainstream of the bullion banking industry.
Now let us tell you how the gold bank will work. Through bullion banking or gold banking, common people can take a loan in exchange for gold or then give a loan to someone. At the same time, gold can also be invested in bullion banking. Moreover, gold can also be traded like a stock in it. Just as bullion banking is currently the most used for investment worldwide, bullion banking will be used mostly for investment in India too.
Bullion banking will bring many benefits to the common people. For example, if someone wants to sell his gold, here he will be able to sell his gold at the right price based on the quality of the gold. While at the time of selling gold, local jewelers often buy gold at a lower price by questioning the quality of gold. At the same time, anytime and anywhere when money is needed, you can get money easily through bullion banking. At the same time, the gold market in bullion banking will be fully organized, in such a way, gold will remain in Demat like shares and whenever someone needs money, he can get money by selling gold.
