Mumbai. After the presentation of the budget in Parliament, the exercise on bullion exchange in the country has intensified. How long will this dream turn into reality, cannot say anything about it yet. However, gold and silver traders and jewelers’ organizations are very excited about this. It is believed that after the start of the Gold Exchange, the picture of the bullion business will change. Businessmen are appreciating this decision of the government. The exchange will not only enable ordinary people to buy pure gold, but will also provide a transparent and reliable platform for investors. The magazine spoke to India Bullion and Jewelers Association (Ibja) national secretary Surendra Mehta regarding the functioning and reliability of the exchange. Here are the excerpts.
Such benefits will be-
The common people will benefit the most. They can buy gold from the exchange. They will get delivery of pure gold. There will be no hidden cost. The process of buying gold will be transparent. Accuracy will be guaranteed. The exchange will enter into agreements with refineries that meet BIS standards. The Exchange will conduct an audit of the refinery to ensure purity.
The need of the scheme
The temples have received gold in charity. People’s feelings are attached to it. Women are very fond of jewelery. To get this gold out, the government will have to make a long-term plan. Rules and regulations have to be relaxed. Unbilled jewelery will have to be allowed. Of this, if 200–250 tonnes of gold comes to the market every year, our import dependence will be reduced by a quarter.
This is how exchange will work
Like the stock market and commodity exchanges, the bullion exchange will also work. The operation will be as per the guidelines of market regulator SEBI. Jewelry traders can get involved with this. Common people can also deal through broker-agent. There will be no risk in transactions in the exchange. Two commodity exchanges are offering the option of futures trading in gold. Both spot and futures options will be available in bullion exchange. Existing exchanges or groups of investors can form bullion exchanges if they meet the set standards.