The Government of India has brought about a huge change in buying and selling of gold by jewellers. The International Gold Exchange has been operational since July at ‘Gipt’ City, Gandhinagar, Gujarat.
Elaborating on its importance, jewelery manufacturers said:
We are the second largest importer of gold in the world. Every year, gold imports for jewelery are increasing.
determination
Generally, gold bars or ‘bars’ can be imported only through banks and certain government approved companies. They fix the price of gold according to the price prevailing at the gold exchange in London or New York. For buying through banks, we have to pay commission to the banks. Also, we have no role in determining the market price of that gold.
All this changed from July 29. In Gujarat, IIPX Since the inception of the ‘India International Gold Exchange’, many facilities have been created. All we have to do is register ourselves with this exchange as an eligible jewelery manufacturer. Any jewelery manufacturer with a turnover of Rs 25 crore can register.
Then, we can buy as much gold as we want. And we will quote the price. To put it in a more understandable way, this exchange is like Mumbai Stock Exchange or National Stock Exchange. Shares are sold there, gold is sold here.
Gold means solid gold i.e. 995 pure and 999 pure gold bars are available for sale here.
Gold quality
The sellers of these gold bars are gold producers in foreign countries. That is, banks dealing in gold and silver, gold mining companies, and gold traders are registered as sellers on IPX. Countless sellers are registered in this way. So, we can buy gold from anyone. And we can buy gold at whatever price we think is right. What matters is the potential benefits. Henceforth we don’t have to buy gold bars at the prices fixed by the banks.
In the IIPX market, everyone can coordinate and fix the price according to the quality of the gold. Let’s call this ‘price discovery’.
Also, don’t pay commission fees to banks. These foreign merchants send gold to any corner of India. A separate PDR for each gold bar. A Bullion Depository Receipt called Bullion will be generated. So, any gold bar bought can be checked to see if it has arrived.
There is no more need to buy gold bars before the festive season. IIPX will know who has and how much gold in the market and can buy gold even at the last moment as per requirement. Another special feature is transparency everywhere. This website is going to help us not only buy gold but also sell old gold.
Even recently, Union Commerce Minister Piyush Goyal allowed this ‘Gift’ City to import 200 tonnes of gold from the United Arab Emirates.
No bother
This IIPX market is not only commercial but also has 3 types of vaults to store and keep gold safe. Gold can be transported all over India from this vault. I mean, think of a rice cooker. If your favorite type of rice comes in a truck, the price will be determined beforehand through auction and bought. When the lorry arrives, it will alight at whichever shop it wants to go to.
The scenario is roughly similar here. This is golden knee. You can buy gold here. No hassle for traders. Due to reduction in expenses like bank commission, transportation etc., there is an opportunity to buy gold at a lower price to the public.
Thus they said.
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