Bullion Industry

• Though India is the leading importer of bullion in the world, it

does not have significant impact on the discovery of gold
prices.
• During recent times, Bullion market has witnessed high degree
of volatility in prices, This has severely affected the bullion
trade in India.
• Gold prices usually increase in the months of August to
December.
• Banks are the main market maker for the bullions(gold) in
India. Jewelers and Brand retailers are also sell Bullions.
 Bullion Industry
• There is no national level trade and industry body, which can
represent the bullion trade and industry.
• Price of gold and silver differ from place to place in India even
at the same moment. There is no benchmark price available,
which is valid for the entire country.
• Retail investors can buy gold from metals traders selling bars
and coins in specialist shops or on the Internet. They pay a
premium for investment products of 5-20% above spot prices,
depending on the size of the product and the weight of
demand.
 Contd..
• Investment in Bullion is a better option than jewellery, because
of purity and less cost(no making and wastage cost).
22 carat = 91.67 % pure (Jewellery).
24 carat = 99.99 % pure (Bullion).

• The domestic bullion and jewellery market is estimated to be

around US$ 16.1 billion, which is expected to grow to the size
of US$25 billion within 2-3 years.
Indian Investment in Gold