Now India will decide the price of gold, PM Modi inaugurated India International Bullion Exchange

Now India will decide the price of gold, PM Modi inaugurated India International Bullion Exchange

With the launch of the India International Bullion Exchange (IIBX) located near Gandhinagar, Gujarat, now the price of gold sold in India will be fixed in the country itself. With the introduction of Prime Minister Narendra Modi, India will now decide the direction of gold prices at the international level, because India is the second largest gold consumer country in the world.

IIBX will act as a gateway to import gold, bookies will not be able to price up and down
Currently, gold is sold in the bullion market according to the price fixed by the London Bullion Market Association.
India to act as a gateway to import gold

Currently, gold is sold in the bullion market of India according to the price of gold fixed by the London Bullion Market Association (LBMA). With the launch of IIBX in Gujarat International Finance Tec-City (GIFT), now there will be no need for gold prices in India to go up and down due to international speculators. IIBX will act as a gateway to import gold into India.

India will get this benefit

The government aims to make this exchange at par with Shanghai Gold Exchange and Istanbul's Borsa Gold Exchange. A big advantage of this will also be that Indian jewelers and exporters will not have to wait for the price to be fixed by the London Bullion Market Association to buy gold.

Banks will no longer have to pay duty in lieu of import

Jewelry exporters or large domestic jewelers cannot import gold directly as of now. They have to import gold through banks and some approved agencies. In return for this import, the bank charges both the gold exporter and the importer. Now, this type of fee will be exempted. IIBX registered jewelers will be able to buy gold directly from the seller. This will reduce the price of gold.

bank charges

Gold rates are opened per ounce on the London Exchange. Then there is an import duty on gold and a bank fee of about $2 per ounce. The bank charges this fee in the name of converting rupees into dollars and other service charges. -Pankaj Parikh, Gems & Jewelry Exporter

Dependence on the bank will be removed

At present, we completely depend on the bank for the supply of gold. Now this problem will go away. By joining the exchange, jewelers can buy gold directly from international sellers. -Rajeev Jain, Gems & Jewelry Exporter