Last one year has clearly demonstrated the power of Gold, the only stable and globally accepted physical currency, in uncertain times. Gold has not only held on to its ‘enduring value’, but has also come on top as the most preferred ‘real currency’ during this period. Is it all driven by ‘unwarranted fear’ or are there indeed real changes on the ground that could justify the buoyancy in Gold?
Another noticeable feature during the last one to two years has been a clear shift in the gold holding pattern, with the share of private holding steadily climbing up. Is it good for the market in the long run? Would it increase volatility in the market?
While the discussions on gold are dominated by investment demand themes, jewellery- the key demand driver, still has its pride place. Are apprehensions such as decline in jewellery demand for gold, real? If so, what could be the ramifications of such demand compression?
Coming to the bullion industry specific issues, where is the Indian gold bullion industry heading? With a series of initiatives announced, a lot of action is expected in the coming months. It could be in the areas of spot market reforms, newer products, export and import related and so on. Exploration and refining space has also seen a spate of activities with the policy initiative of the Indian Government.
Indian gold derivatives market is perhaps the best case of harmonious integration of hedgers and speculators towards creating a vibrant and reliable price signal for risk management purposes. The derivatives market is getting ready for the next level of innovation in products and their usage. Will it be too much to say that Indian market would soon start setting the global prices for bullion?
The efforts by BIS on testing and hallmarking jewellery have evoked mixed response. While there are conceptual agreement on the need for quality assessment and certification, the core issue is about the implementation. Are there any way out in a country as vast as India where traditional jewelers co-exist with national brands?
The above are some of the issues that are exciting every participant involved with bullion and jewellery trade. Such issues have multiple dimensions and ramification, which only experts can clarify and guide.
Welcome to India International Gold Convention 2008, to explore the possibilities, to get an in-depth view on the current scenario and to plan and prepare for future. Needless to mention, networking with the best in business comes naturally.