GOLD WILL CONTINUE TO SHINE
The Free Press Journal (FPJ) in association with Bombay Stock Exchange (BSE) organised a conference titled ‘Gold and its increasing allure for India and the world’ on Tuesday at BSE convention hall. The discussion covered varied topics – all related to gold – from policy issues to the need for the industry to regulate itself.
The event was divided into two panel discussions namely ‘Markets and Investments’ and ‘Evaluating gold policies’. The panel on Markets and Investments had Ketan Kothari, Director, Augmont; Ranjit Singh, Products and Business Development, BSE; Keyur Shah, CEO-Precious Metals Business, Muthoot Pappachan Group; and Kunal Shah, Head of Research, Nirmal Bang Commodities.
The panel on gold policy had Sanjiv Arole, gold columnist; Surendra Mehta, National Secretary, India Bullion & Jewellers’ Association (IBJA); Sudheesh Nambiath, head, India Gold Policy Centre of the Indian Institute of ManagementAhmedabad (IIM-A); Somasundaram PR, MD, World Gold Council India’ Madan Sabnavis, Chief Economist, CARE Ratings Ltd; Sabyasachi Ray, ED, GJEPC; and Bhargava Vaidya, bullion expert.
While the demand in India for gold has been subdued this year, expect gold prices to rise further, stated Kunal Shah. He added, “There is no way you can quantify that gold will go to this level. But a 10 per cent CAGR is on the cards. I am constructively bullish about this.”
Madan Sabnavis opined there is demand for gold in India. “It is just that people are following waitand-watch approach because the prices surged some time ago.” Surendra Mehta stated gold has a social value. “Hence, gold remains a social asset.” But Bhargava Vaidya stressed that gold is considered unproductive as people are not able to monetise it and, therefore, it lies in bank lockers.
Keyur Shah said, “Our average ticket size for gold, which we sell through our 3,600 branches, is around 3.6 gms. Can you imagine the income level of consumers that come and purchase from us? For these customers, it is about affordability.”
Talking about paper gold, Ketan Kothari said, “It
The dignitaries who participated in the panel discussion on ‘Evaluating gold policies’. PIC: BL SONI
was India that came out with the concept of paper gold in the first place. But regulations prevented it becoming popular in India, and the markets grew overseas.” Ranjith Singh revealed that from Dhanteras till Diwali, there was a collection of Rs 50 cr on BSE platform. “The markets have changed nowadays.”
Somasundaram PR said that the industry needs to buck up and work in tandem with policymakers rather than working in silos and looking at shortterm issues. “For a large industry like gold, there is unfortunately no self regulatory or self disciplining board. But domestic associations and councils concerned with gold have lately been doing a good job and are trying to upgrade trade practices.” He added the industry too needs to raise issues and concerns with policymakers in an effective manner.