Page 7 - Bullion World Volume 04 Issue 07 July 2023

Bullion World | Volume 3 | Issue 7 | July 2023

EDITORIAL

Dear Readers

India, unlike its Asian peers like China, is witnessing a lull in
gold demand, with gold bullion still trading at a discount
in the Indian markets when it is trading at a premium (to
London) in other Asian markets. The discounts in the domestic
markets could also be attributed to the auctioning by gold
loan companies, supply of old gold (scrap recycle) and de-
stocking by some jewellers.

With gold prices making record highs and remaining high
throughout the first half of 2023, domestic markets witnessed
a significant quantum of jewellery scrap supply. According
to the World Gold Council, in 2019, India witnessed a record
high of 119.5 tons of recycled gold. If price continues to
remain elevated, CY2023 could see a higher recycled gold.

The industry remains optimistic about a revival in jewellery demand in the coming months. South
India, a major consumer of gold as jewellery, might see a demand spike when marriage season starts
from July 15, extending until August 10.

Sovereign Gold Bond (SGB) series -1 for FY2023-24 witnessed a record collection of Rs. 4604 crores
with 7769 kg of gold subscribed by investors. It is pertinent to note that subscription dropped to Rs.
6550 crores during FY 2022-23 compared to FY 2021-22 subscription of Rs 12991 crores.

On the policy side, India and the UAE are working together to explore opportunities to increase trade
of value-added gold and gold products.

Senco Gold & Diamonds has become the first qualified jeweller from the eastern region of India
to import gold through India International Bullion Exchange (IIBX) post Indian Customs Electronic
Data Interchange Gateway (ICEGATE) integration. Aditya Birla Group, with large-format jewellery
retail stores with in-house jewellery brands, is foraying into branded jewellery retail business with an
investment of Rs 5,000 crore through its venture Novel Jewels Ltd.

In this edition, Mr Anirudh Menon from FINMET Technologies has given us insightful information
about the future of digital gold in India, while Mr Raunak Modi and Mr Vipin Jindal from ICRA have
provided an excellent overview about the retail jewellery demand during the months of Akshaya
Tritiya. The recent developments at the IIBX was brought to light by Mr Ashok Gautam, we bring our
readers snapshots of the Asia Pacific Precious Metals conference, the final part of the India Silver
Conference followed by a short write up on the sustainability in the Bullion Industry.

We would be happy to receive your comments and feedback on the content of this edition.
Please write to editor@bullionworld.in

Best wishes,
G Srivatsava
Editor

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