Page 10 - Bullion World Volume 3 Issue 11 November 2023

Bullion World | Volume 3 | Issue 11 | November 2023

Mr Anshuman Sharma, StoneX: CEPA offers more than just precious
Globally, gold sentiment is price- metals imports and exports.
sensitive, particularly in China and Traditionally, UAE has been a
the UAE. The Chinese gold price source of refined bars for India, but
cannot serve as a benchmark due CEPA was expected to streamline
to customs authorities’ unique the process. However, shipments
practices. Demand for gold depends through CEPA have faced delays,
on various economic factors and even after clearance certificates are
transaction costs, which have risen, issued, compared to other shipments
impacting the industry. However, from UAE.
demand for investment bars remains
strong worldwide, including India.

Mr Anshuman Sharma

Mr Ravi Ramakrishnan, understand the importance of
JP Morgan: The Indian market’s maintaining a robust supply chain
demand window is shortening, to meet the demands of our clients.
with cyclical imports instead of a The impact of these patterns is not
continuous flow. The pandemic has limited to India alone; it resonates
introduced seasonality, with specific globally, affecting the dynamics of
months seeing minimal LBMA the precious metals market.
bar imports. Bullion banks like JP
Morgan aim to stock gold to serve The elevated local prices in China
the market quickly. due to irregular gold imports
emphasize the interconnectedness
This seasonality and cyclical pattern of international markets and the need
observed in the import of LBMA for effective strategies in managing
bars by Indian importers is indeed the flow of precious metals to
an interesting phenomenon, and ensure stability and fair pricing for all Mr Ravi Ramakrishnan
it has a ripple effect on the global stakeholders.
gold market. At JP Morgan, we

Mr Mohammad Ayyob, In this increasingly interconnected
Sam Precious Metals: world, it's crucial to acknowledge the
Elevated gold prices may have led efforts made by the UAE government
to increased domestic demand and the gold refining industries in
for recycled gold. CEPA between aligning with ethical and responsible
India and the UAE has introduced sourcing practices.
a 1% lower duty structure for gold
imports to India, fostering growth This not only bolsters confidence
and communication between the in the gold supply chain but also
countries. UAE’s refining industries contributes to the global efforts
comply with social and responsible for sustainability and ethical trade,
sourcing standards. further strengthening the relationship
The CEPA channel, while promising, between the UAE and India, and
requires clarifications regarding other nations, in the gold industry.
demand and prices before both
Mr Mohammad Ayyob
countries fully engage in this treaty.

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