Centre finalising gold policy reforms, Budget rollout likely

Centre finalising gold policy reforms, Budget rollout likely: Calls meeting of stakeholders today to finalise national bullion board and exchange


A welcome initiative. Long overdue. At least at this stage, Govt must not miss the chance to put in place an apex body responsible for gold management, coordinating the roles of various agencies and stakeholders interested in dealing in the yellow metal.
Mapping domestic stock of gold, ensuring adequate supply of gold in the Indian market for various uses from pharmaceutical to jewellery manufacture and export, financing procurement, processing and marketing gold and gold-based products and purity of gold products sold in domestic markets and export could get covered under the ambit of the board.
Please read excerpts from my article on the subject published in April 2012*
M G Warrier

*Excerpts from M G Warrier’s article “Gold management needs a makeover” published in The Hindu Business Line, April 13, 2012:


The time is ripe for authorities to think in terms of dedicated professional institutions at the regional/state level, which will handle gold from a banking angle. An apex body should be equipped with linkages for import and export of gold and gold products with borrowing and lending capabilities.
States like Kerala have successfully intervened in other similar sectors like chits/kuris and lotteries, which were also areas of exploitation by vested interests. Private players had to fall in line and function with discipline and self-regulation.
Establishment of ‘Gold Corporations' with state participation could also be debated. Such an institution can act as a depository where the gold possession of individuals now in bank lockers and the pledged gold can find a safe shelter, provided the purity can be ensured, and the ‘Corporation' can find the resources and skill to deal in gold and retain the customers' confidence.”

Use the following link to read a detailed analysis:

M G Warrier


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