India to roll out comprehensive Gold policy this year
MUMBAI (Scrap Register): India is likely to unveil its proposed comprehensive Gold policy this year. This will have positive impact on exports.
According to the new policy, banks will be allowed to do ‘Bullion Banking’ (take risk in bullion) and new infrastructure such as spot exchanges would be a reality, ushering in transparency and thereby benefiting consumers and small jewellers in particular.
Bullion banking will enable consumers to do bullion-related transactions with banks with ease. Spot exchange will solve for liquidity in the market.
Meanwhile, the World Gold Council (WGC) has upped its Gold consumption forecast for the Indian market for calendar year 2019 to 750-850 tons from the 700-800 tons projected earlier. This demand forecast is also higher than last year’s average demand of about 760.4 tons. India’s Gold demand has averaged about 838 tons in the last decade.
Annual Gold demand gained 4 per cent in 2018, on highest central bank buying in 50 years. Gold demand had reached 4,345 tons, up from 4,160 tons in 2017 and in line with the five-year average of 4,347.5 tons. A multi-decade high in central bank buying (651.5 tons) drove growth.