Gold Silver Reports — The local bullion trade is considering introducing Indian gold standard bars which can be traded on commodity exchanges as well as exported, taking a cue from the LBMA (London Bullion Market Association) good delivery standards for the yellow metal .
Indian Gold Standard Bars in the Works
A committee has been formed to work on the guideline for introducing the Indian gold standard bar.It comprises MMTC PAMP gold refinery Managing Director Rajesh Khosla, Indian Association for Hallmarking president Harshad Ajmera, Association of Gold Refiners and Mints Secretary James Jose, Suresh Lawat who owns a refining unit at Rudrapur in Uttarakhand and Anil Kansara of the Gujarat Gold Centre .
These bars will be manufactured from the doré bar, or impure gold imported by refiners, and scrap gold that households sell .
“Sometimes, the good delivery standards set out by LBMA become difficult to meet. So, we have decided to come up with Indian gold standard bars which will be tradeable on the MCX,“ Haresh Acharya, secretary of the Bullion Federation, told ET. “The bars produced from doré gold and scrap gold will be certified by BIS. There will be a penalty clause if any refiner fails to comply with the standards.“
India’s doré imports rose to 180 tonnes in 2015 from 120 tonnes the year before, latest available data show. There are 32 gold refineries in India and 27 of them process unrefined gold with a total refining capacity of 1,467 tonnes .
Bullion traders said in the next five years they see around 250 tonnes of scrap gold from Indian households entering the Indian market every year because of rising prices . — Neal Bhai Reports