In part two of this latest edition of Spotlight on New Members, we find out more about MMTC-PAMP, including its role within the precious metals market and its reasons for wanting to join LBMA.
Five questions, five answers
What were the reasons for you wanting to join LBMA and what do you see as the key benefits of Membership?
MMTC PAMP is India’s leading gold and silver refinery. We are committed to achieving high standards of integrity and sustainable practices in the precious metals industry in India, as well as in the global markets. We take immense pride in having achieved the status of Full Member of LBMA, which attests to our adherence to global best practices, since we diligently follow a Responsible Precious Metals Policy that outlines our commitment to responsible supply chain management. In the global gold market, responsible sourcing has emerged as a key requirement and a precondition for gold traders and banks to do business across geographies. In OTC markets and most gold exchanges worldwide, it is already a requisite delivery norm.
What’s more, adhering to these global guidelines and best practices on responsible sourcing facilitates greater investments and trade in the sector.
Additionally, adherence promotes resilience and certainty of business for domestic enterprises, while aiding the Government’s campaign against any illicit trade in the gold market.
Tell us about your company’s role in the precious metals market?
MMTC-PAMP has the largest refinery for gold and silver in India. We currently have an installed refining capacity of 300 tonnes of gold and 600 tonnes of silver per year, with the technology to refine gold and silver up to 999.9+ purity to meet the highest technical and quality standards across the globe. We not only offer the highest purity bullion and minted products in gold and silver, but also buy back old gold from businesses and retail customers through our Purity Verification Centres across 13 cities. We were also the first to launch the Gold Accumulation Plan (digital gold) in India. We have recently started assaying and hallmarking services as well, through a fully-owned subsidiary company. Finally, we have established a separate business focused on providing precious metals products and solutions to industries such as automobile, domestic switch, home automation, and safety and electrical equipment manufacturers.
Adhering to these global guidelines and best practices on responsible sourcing facilitates greater investments and trade in the sector
What’s the background and history of the company?
MMTC-PAMP was founded in 2008 as a joint venture between Switzerland-based bullion brand, PAMP SA, and MMTC Ltd, a Government of India undertaking. MMTC-PAMP seamlessly marries Swiss excellence with Indian insights. We are internationally recognised as an industry leader for bringing global standards of excellence to the Indian precious metals industry.
We have received several awards since our inception from local and global industry bodies for the transparency and sustainability that we rigorously uphold in our sourcing, refining and supply of precious metals in the Indian market. MMTC-PAMP is the only LBMA-accredited gold and silver refinery in India, and is accepted across global commodity exchanges and central banks.
How has the Covid-19 pandemic changed your business and what lasting impacts do you think it will have on the market?
Gold has a very strong cultural significance for Indians. Festivals and weddings are major occasions for gold purchases in India. Consequently, in 2020, the pandemic had a short-term impact on demand due to restrictions on movement. However, as soon as the COVID-19 pandemic weakened in 2021, the pent-up demand for gold was released and we saw record consumptions of gold in October to December 2021. The pandemic has also aided in boosting customer confidence in buying gold from digital channels.
What are your future plans for the business?
We aspire to be the precious metals brand, built on trust and social responsibility, for our customers across segments. We wish to do this by creating an integrated ecosystem for jewellers, financial institutions, corporates and consumers that offers a wide range of products and solutions.
MMTC-PAMP is the only LBMA-accredited gold and silver refinery in India, and is accepted across global commodity exchanges and central banks.