WGC Spotlights Bullion Banks as the Key Pillar of the Market

The commercial banks in the country are reportedly ready to join the race, offering a range of bullion banking products and related services to customers.

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) analyzes the key role played by bullion banks around the world, in building greater trust across the entire gold value chain. The report specifically emphasizes the need for bullion banking in India.

According to PR Somasundaram, bullion banks have emerged as the key pillar of the market. The global bullion banking reported annual revenues of approximately $1.5 billion-$1.8 billion in 2017. The markets in London and New York have been the major contributors to bullion trading. Other markets such as Singapore and Shanghai too have emerged over the past fifteen years, WGC Report said.

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WGC noted that though being one of the largest gold markets, India still lacks proper organization, structure and trust. The emergence of a robust bullion banking industry could drive big growth in Indian market. The much-awaited launch of Indian gold spot exchange will offer value-added services to customers. The commercial banks in the country are reportedly ready to join the race, offering a range of bullion banking products and related services to customers.

However, the gold market in India faces significant challenges including limited international demand for Indian jewellery, unorganized market across the bullion value chain and limited recycling of household gold.

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