Page 15 - Bullion World Volume 02 Issue 11 November 2022_Neat

Bullion World | Volume 2 | Issue 11 | November 2022

Organised “Sell Old Gold” branches in India

can help to attract customers to sell their
gold in need of expenses that couldn’t meet

by pledging gold, buying new gold, and

monetising idle gold lying in the household

Set up cost - One of the major we regulate reforms to appoint
components of setting up organised organised “Sell Old Gold” branches
also helped price increase thereby branches for buying old gold is X-ray in buying gold from NBFC and Banks
helping the Indian consumers gain fluorescence (XRF) spectrometer based on customer requests.
from selling the gold. Post-pandemic, machines for analysing the gold
due to the overall economic purity. Reliable and efficient XRF Outlook
slowdown, lower and middle-income machines are imported at an Key drivers for consumers
consumers monetize the gold in average cost of around INR.25 to selling gold are higher gold price
hand or pledged for their needs. 30 lakhs in India. Reducing the movement, economic backdrop,
Moreover, we have seen consumer import duty or developing Indian- and behavioural change. Organised
behavioural change in the interest of made efficient XRF machines can “Sell Old Gold” branches in India
younger consumers for monetising help in the expansion of dedicated can help to attract customers to
gold jewellery/coins/bars subject collection centres in the country. sell their gold in need of expenses
to providing transparency and that couldn’t meet by pledging gold,
convenience in selling gold. Sale of Pledged gold from banks buying new gold, and monetising idle
and NBFCs - Gold Loans have gold lying in the household. However,
Challenges significantly grown in India, however the expansion of such dedicated
Cash Transaction - One of the due to economic backward branches depends on support from
major constraints for organised customers couldn’t repay the loans. initiatives such as revamp of the
branches for buying old gold However, currently, as per the Gold Monetising Scheme (GMS),
has been that customers and regulatory process, the pledged gold measures to reduce set-up costs,
jewellers prefer selling or buying has to be auctioned. It increases and implementation of reforms
old gold in cash despite regulatory the operational cost to banks and encouraging customers for selling
constraints. Government initiatives in NBFCs as well as increases the gold.
incentivising jewellers and customers transaction charges for customers
against the sale and purchase of old availing of Gold Loans. The auction
gold via digital transactions can play process is time-consuming for
a significant role in the organised customers in liquidating their gold
aggregation of old gold. for an emergency. Recommended

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BW Nov 2022.indd 15 10-11-2022 11:35:47