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India's plans to have its own gold exchange

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  • Economy
  • 3 months ago
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India’s ambition to have its own national gold market is edging ever closer, as major banks have forwarded plans to the government in order to set up an actual physical gold exchange.

The plan has been fuelled by China’s successful Shanghai Gold exchange which opened back in 2002 and although London remains the global trading hub, China’s market has become the largest and India being the world’s second largest consumer it makes perfect sense.

Major banks such as Standard Chartered, JPMorgan, India’s own State Bank and the World Gold Council presented the Indian government with a blueprint.

However, India lacks a centralised forum for physical trading or a national benchmark price which has raised concerns over transparency and the quality of the gold itself.

The government has sought to engineer a shift from gold as a relatively unproductive import, burdening its foreign exchange reserves, to a financial asset traded alongside equities and bonds.

 

 

 

Source: Smart Trend Team