Bullion Industry

8/14/2019 Bullion Industry

1/18

Bullion Industry

Prithviraj KothariRiddiSiddhi Bullions Ltd.


2/18

Importance of Bullion

Savings & Investment medium for majority ofIndians Rural and Urban

Over Rs 30,00,000 crores ($650bn) in savings

Annual turnover of over Rs. 300,000 crores

All physical gold and silver trades changearound three hands


3/18

My query to commodity exchanges

Which commodity contributes to themaximum revenue to your exchange? How

much percentage of overall revenue?

What have you done for development ofparticipants from this industry?


4/18

Commodity Exchanges

Lions share of revenue from gold and silver

Only commodities to have smooth deliverymechanisms


5/18

Employment

Jewellery Industry is one of the most important

labour intensive industry which has survived

Jeweller / Bullion dealer is one of best

paymasters in smaller towns


6/18

International

LBMA daily clearing volumes for

Gold - $18.8 bn

Silver- $ 2.03 bn

Gold investments have always been flight tosafety


7/18

My query to the Reserve Bank

What returns do you get from your foreign

exchange reserves?

Where do you place gold and silver in your

investment portfolio?


8/18

RBI Forex Reserve

Increase share of Bullion in Reserve

Be active in Managing Gold Reserve

Silver to get a fair share in Reserve

Minimum share of bullion in Reserves:

Gold 5% (600 tonnes)Silver 1% (7500 tonnes)


9/18

Use of Reserve

Bullion Stock with Custodian

Use as Base Stock for Trade

Increase share of world Speculative Trade


10/18

My query to the BBA

Is gold an untouchable commodity? Why is

gold and silver discriminated in imports andexports despite being Gods own currency?

What efforts has BBA put in towards solving

this?

What efforts have you put in towards solving

infrastructure in the Zaveri Bazaar?


11/18

Bullion Imports and Exports

Free Imports of Gold and Silver

Exports of Gold & Silver

Refund of duty levied & other taxes levied

Or duty free entitlements


12/18

Supply to SEZs

Bullion supply to SEZs

Entitlement for Duty Drawback Benefits

Refund of all Local Taxes


13/18

Silver Reforms

Allow forward bookings through banks and

International Exchanges

Encourage Silver loans


14/18

My query to All banks

Why is it that there is no financing against

security of gold?

Why dont bullion dealers qualify for gold and

silver loans?


15/18

Finance

Removal of Ban on Financing against Gold

Establish acceptable Financing (Banking)

norms for Gold and Silver

Encourage Collective Savings


16/18

Infrastructure

Assayers

Refiners

Custodians


17/18

CAUTION

Old Evil

Gold & Silver smugglingRemoved through reforms and easy imports

Present Evil

Gold & Silver Futures / Forward trade ..

-- need reforms to control


18/18

How do we take it up?

The organizers, the associations and the

exchanges should together meet theregulators atleast once every year after theconclusion of this convention to make surethat we just dont end up

only presenting and talking

. but acting on the same.

Documents

Bullion Industry