Page 27 - Bullion World Volume 4 Issue 10 October 2024

Bullion World | Volume 4 | Issue 10 | October 2024

chain. The Gold Bar Integrity Program, a partnership as a reliable and secure form of lending. Regulatory
between the LBMA and the World Gold Council, was support, such as the Reserve Bank of India’s decision to
introduced as a game-changing initiative to track gold increase the loan-to-value (LTV) ratio, allowed banks to
from mine to market, providing real-time data on ethical expand their portfolios. This session also touched upon
sourcing. Mr Baijnath shared how Rand Refinery is the role of co-lending between banks and NBFCs, which
leading the way by transitioning to renewable energy and has helped gold loans reach rural and underserved
reducing water usage, setting an example for the global markets. Mr Pramod Mohan (FinMet) emphasized
refining industry. how technology is revolutionizing the gold loan space,
introducing innovations like balance transfers for gold
Gold Investment Demand loans and real-time tracking of collateral.
Chair: Ms Sheela Kulkarni, World Gold Council
This session explored global and Indian trends in Start-ups in the Gold and Jewellery Industry:
gold investment, with speakers Mr Philip Newman Technology Meets Tradition
(Managing Director, Metals Focus), Dr. Renisha Chair: Mr Kethan Kothari, Director, Augmont Gold
Chainani (Head of Research, Augmont-Gold For All), This session delved into the disruptive innovations
and Mr Dipankar Mitra (Director of Research, ASK reshaping the gold and jewellery industries, with start-
Wealth Advisors) providing insights into how post- ups using technology to enhance customer experiences,
pandemic market dynamics and central bank policies streamline operations, and make gold more accessible.
have influenced gold demand. The panel highlighted Entrepreneurs like Mr Arjun Kazanchi (Rooba Finance),
the revival of bar and coin demand in India, and how Mr Veer Mishra (Plus Gold), and Mr Nishchay AG
Sovereign Gold Bonds (SGBs) and ETFs are gaining (JAR Technologies) showcased their cutting-edge
popularity among younger investors. Dr Renisha noted solutions.
that while Indian investors typically buy during price
dips, global markets like the U.S. and Europe are
showing mixed demand. This divergence in behaviour Gold Price Outlook
underscores the unique cultural and economic drivers of
gold demand in India.

Gold Loans Market: Expanding the
Financial Ecosystem

Chair: Ms Soni Kumari, Commodity Strategist, ANZ
Research The Gold Price Outlook session offered a
comprehensive overview of the factors influencing gold
prices in 2024 and beyond. Ms Joni Teves (Commodity
Strategist, UBS) provided a macroeconomic analysis,
predicting that gold prices would continue their upward
Chair: Mr P.R. Somasundaram, World Gold Council
The gold loan market in India has witnessed exponential trajectory, buoyed by strong demand from central banks
growth over the past decade, becoming an integral and resilient physical demand in India and China. She
part of the country’s financial ecosystem. This session noted that macroeconomic uncertainties, such as U.S.
highlighted the role of gold loans as a key financing tool, debt concerns, could drive further investment in gold as
especially during times of financial uncertainty. a safe haven.

Mr Achal Abhishek (AGM, SBI Bullion Branch)
Mr George Alexander Muthoot (Muthoot Finance)
shared his journey of formalizing the gold loan market, presented a unique combination of technical and
transitioning from an unorganized to an organized sector. astrological analysis. He forecasted medium- and
With gold held in households, gold loans offer quick long-term price movements, with significant price
liquidity without the need for credit scores, focusing targets driven by both market conditions and planetary
solely on the quality of the gold. The ease and speed alignments, a method that blends tradition with modern
of processing gold loans—completed in as little as 15 technical trading strategies. The session concluded with
minutes—have made them a preferred financing option a quiz that encouraged participants to reflect on their
for millions of Indians. Mr Devendra Kumar Ojha trading styles and approaches to forecasting gold prices.
(Federal Bank) discussed the surge in gold loans during
the COVID-19 pandemic when banks saw gold loans

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