Page 45 - Bullion World Issue 7 November 2021

INDIA news Bullion World | Issue 07 | November 2021

Andhra

Pradesh: Gold

mining set

to restart in

Anantapur
BSE readies technology to after 2

launch electronic gold receipts decades

BSE is ready with the technology to introduce electronic gold
receipts (EGRs) on its platform. This will help create uniform After a gap of nearly two decades,
price structure for the precious metal across the country, said gold mining is set to restart in
BSE's chief business officer. The stock exchange will acquire Ramagiri and Bhadrampalle gold
the required internal approvals and apply to markets regulator fields. The mines and geology
Sebi for the launch of the new class of security on its platform. department has identified nearly
He added that the exchange was working on the technology for 16 tonnes of gold reserves in
a very long and was awaiting for in-principle approval to take it Anantapur district, where private
further. This comes after the Sebi board cleared a proposal for agencies would be roped in to mine
gold exchange, wherein the yellow metal will be traded in the the gold deposits at 10 locations.
form of EGRs and will help in having a transparent domestic spot
price discovery mechanism. Source: https://timesofindia.
indiatimes.com
Source: https://www.livemint.com

Central bank gold reserves

lower sovereign credit risk:

IIM Ahmedabad study

High Levels of central Bank gold reserves have a strong impact on reducing the
sovereign credit risk of that country in international markets, found a study by the
India Gold Policy Centre (IGPC) at the Indian Institute of Management Ahmedabad
(IIM-A). The researchers considered five-year sovereign credit default swap (CDS)
spreads for 48 advanced and emerging market countries over a 20-year period,
from 2000 to 2020 for measuring the economy’s default risk. The data was mapped
against information on central banks’ gold stocks obtained from the World Gold
Council database. The study reveals that higher central bank gold reserves reduce
future uncertainty and reinstate confidence among investors as well as policy
makers. The research reveals a negative and significant association of sovereign
CDS spreads with the central bank gold holdings of an economy and researchers
noted that the likelihood of a credit ratings downgrade decreases with larger gold
holdings of central banks by reducing future uncertainty and reassuring confidence in
investors and policy makers.

Source : https://www.livemint.com

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