In today’s webinar, Sunil Kashyap (Managing Director, Finmet PTe) joined Jeremy East (Senior Advisor for Asia, LBMA) and David Gornall (Senior Adviser, LBMA) to discuss the India International Bullion Exchange and the changes this development will bring to the region, and the world.
Jeremy began by giving an overview of how the launch of the Shanghai Gold Exchange in 2002 precipitated a huge shift in the way business was done in terms of distribution, volume, and demand. Is this what’s to come for India?
The panellists agreed that the establishment of the India International Bullion Exchange and the push towards standardisation will certainly open the market to global players.
Sunil detailed the developments in more depth, explaining that “changes over the last few years have laid the building blocks for a change in the market structure. The Indian government has now mandated two additional regulators, which have moved nimbly to change the market. They have allowed exchanges to be set up onshore, as well as a spot exchange offshore. This could mean a move towards exchange trading, as more transparency and liquidity in the market is desirable.”
David added that the large onshore jewellers could take a lot of the risk management into their own hands, as they avoid using nominated agencies. “They’ll be in more control of the supply,” he said. “And for foreign supply, too – movement will be freer. Gold flows will likely increase into India in a much smoother way than before.”
“There’s so much potential – new clients, new relationships, new trading and sourcing arrangements,” added Jeremy.
Watch the full webinar to find out more about the potential, challenges, and how the local and global market will deal with them.
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