Page 20 - Bullion World Volume 03 Issue 6 June 2023

Bullion World | Volume 3 | Issue 6 | June 2023

Mr Rajesh Kapoor- Kundan Group have been we see in Silver?
in the bullion industry for the past two decades. Mr Vikram Dhawan: As per SEBI guidelines, silver
There is good demand for digital investment as ETFs must be backed by physical silver. The Indian
product knowledge has been increasing. Silver is ETFs essentially track the local spot market, meaning if
more affordable, and the surge for silver coins on there is any discount or premium in the spot, it will also
e-commerce websites has picked up recently, giving reflect on the ETFs, whether gold or silver. It removes
us a good indication of the digital platform. the possibility of arbitrage as well.

Mr Vikram Dhawan, Nippon India AMC, Delivered Mr Rajeev Ranjan: Ebullion Pvt Ltd has tie-ups with
insightful information about the mutual fund sector global service providers giving real-time information
/ ETFs’ and various costs involved in ETF pricing. about the price, making it easier to set the Indian price
Speaking on digital platforms, he stated the easiness according to the customs duty. At the same time, some
and user-friendly nature of the product, where anyone overheads are involved in physical bullion, which is not
from anywhere in the world can buy the product. the case for digital investment methods like ETFs or
Digital gold/silver.

He insisted the consumer should be aware of these
charges beforehand on transaction charges, which are Question to Mr Rajesh Kapoor: Silver Jewellery
generally high, as they can vary from one platform to segment has many issues regarding purity and
another. hallmarking. Do you see this as an opportunity to
address and tackle these issues as a refiner?
Kundan Group adopts rigorous process and system
In the case of silver ETFs, the expense ratio and
impact cost play a vital role. ETFs strive to provide that allows the company to address any issues related
a cost-effective method to invest in precious metals. to purity. Kundan Group educates their customers
Considering the costs and the safety aspects, on various aspects of purity through social media
ETFs can be considered one of the best modes of platforms. Ultimately, consumer trust is the most
investment. The global AUM for silver ETFs is almost important aspect of silver jewellery and artefacts.
24,000 tonnes, indicating recognition of the product by Question- Is there a space for commemoration
the investment market. In conclusion, such products coins for collectors, especially in India?
can be regarded as to be one of the best product There is a good opportunity for commemorative coins
innovation in the past
as many corporate entities look for silver coins. Above
a certain weight of 50 grams, it can be a good means
Question to Mr Vikram Dhawan and Mr Rajeev of investment.
Ranjan: What are the challenges digital platforms
face in context with ETFs and the price discounts (Part-3 will be published in July edition)

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