Page 18 - Bullion World Volume 04 Issue 08 August 2023

Bullion World | Volume 3 | Issue 8 | August 2023

Unveiling the Journey of Gold Refiners in 2022-23

Bullion being supplied from such diverse sources, the bullion prices across
India often varies by 1% to 6%, vis-a-vis the LME gold rates and often goes
into discount when supply exceeds the local demand. These discounted
local prices make dore imports at LME prices non viable for domestic gold
refineries operating under long term dore supply contracts.

processed by the BIS licensed gold because of the 3% gst input credit
refineries and artisanal refiners and on these bullion purchases.
jewelers inhouse workshops. This
source often gets clubbed with the With quality certified bullion
parallel supply chain / economy becoming easily available in small
of 300 tonnes of bullion coming quantities across the country at
Mr James Jose from grey market old gold supplies uniform transparent prices, the
and smuggled gold available from investment segment of gold buyers
various sources. too shall be calling on these gold
exchanges. The bullion bars sold by

Unique traceability for bullion bars The IIBX at Gandhinagar has started these exchanges being in the india
picking up volumes, and as and good delivery category, supplied
The supply side of Indian bullion
market is fragmented in nature, when the domestic gold exchanges by bonafide vendors, carry its
with the major share coming at multiple locations in India too start full traceability of origin similar to
from official imports of bullion operational with OTC supply and the HUID traceability for jewellery
from accredited gold refineries EGR, substantial quantities of bullion articles introduced by BIS. The
abroad and the remaining portion supply from local sources may get traceability codes on bullion bars
contributed by domestic refineries diverted through these exchanges, shall be revealing the name of the
processing imported gold dore, at fair and transparent prices, bullion manufacturer, weight of the
both totaling to around 600 – 700 leading to India emerging as a price article, purity /fineness and batch
tonnes per annum. Another 300 maker for bullion. When bullion gets number / date of origin. This may
tonnes of bullion is estimated to available on spot rates, even in small eventually curb the bullion supply
be supplied from the refining of quantities of 50 gm etc, much of from the grey market operators
domestic jewellery scrap, coming the grey market purchases by the and smuggled sources especially
from jewellery shops, pawn brokers, small and medium jewelers may under the impending mandatory
gold loan NBFCs etc, which is get diverted to the exchanges also hallmarking of bullion.

Update in Dore Refining – 2022-23
Below are the import data of Gold Dore & Gold Bar for the last 5 years

Gross Gold Gross Dore In our observation, the industry
Bar Imports Imports of importing Gold Dore into India
Year
(In tonnes) (In tonnes) may not be as beneficial for several
Annual Annual
reasons:
2019 823 326
1. Duty and Taxes: Importing gold
2020 428 159 Dore into India attracts customs
duty and other taxes, which
2021 1077 313
significantly increase the cost
of the imported material. Last
2022 715 324
year, Govt of India increased Mr Harshad Ajmera
the Import Duty on Gold, which
2023 307 131
created a discount in the market.

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