India is going to build its own gold trading exchange. Sebi has sent a proposal to the Central Government regarding this. To tell you for information, to announce the creation of gold exchange in India, it was also announced in the budget of 2021.
Let us tell you for information that there is no gold exchange of its own in India. And it is the international prices that determine the prices of gold in the Indian market. But now after the opening of the gold exchange in India too, the prices of gold will be fixed here for the Indian market. India is the second largest gold consuming country in the world. In such a situation, you can guess how big the gold market in India is.
Top gold consumer country list (jewellery gold conception)
|1||India||136.6 billion USD|
|2||China||132.11 billion USD|
|3||USA||34.8 billion USD|
|4||UAE||11.5 billion USD|
|5||Indonesia||10.7 billion USD|
|6||UK||10.3 billion USD|
|7||rus||9.1 billion USD|
If we import gold in India, then 900 tonnes of gold is imported in India almost every year. India is one of the countries in the world that imports gold in large quantities. Gold is produced in very small quantities in India. In such a situation, opening a gold exchange on your own can be a profitable deal for a big country like India.
Gold exchange will open in India
SEBI has sent a proposal to the Government of India. Under which the proposal to open a gold exchange in India has been kept. Let me tell you for information that it is not like that a decision has been taken to open a gold exchange in no time. In fact, the budget also announced the opening of the gold exchange. To fulfill this announcement, the Government of India has started taking steps forward. For the last two-three years, there were reports that the Indian government was planning to open its own gold exchange. And now it is seen descending on the surface.
After the gold accident opens, there will be more transparency in gold prices in India. Regulated by the government, customers’ confidence in gold prices will increase even more. At the same time, fraud in the prices of gold from customers will also be prevented.
Gold exchange format
Gold exchange is going to open in India. This thing is almost certain. But now the question arises here, what will be the nature of gold exchange in India?
For information, let us know that it is also controlled by the stock market and mutual funds in India. In such a situation, the sebi will also control the gold exchange and will regulate it.
The way in which we can currently buy shares from mutual funds and the stock market. In the same way, we will also be able to purchase and sell digital gold in the coming days. SEBI can also apply the currently issued pattern to the Gold Exchange as well. Where intraday trading will also be possible. At the same time, you will also be able to buy holdings in gold.
However, no decision has been taken as to what the quantum of digital gold will be. And it is under consideration. Because keeping the quantity of gold in virtual form, its prices can be seen to fluctuate more. The money will also have to be equal to the price of virtual gold. In such a situation, how much gold does the Indian government start with the exchange? This is going to be interesting to watch.
Gold Exchange Trading
Currently the way in which you have to open a demat account. You may have to open a separate commodity account to get the same gold. However, these two can also be combined in one place. However, no decision has been taken by SEBI regarding this.
To trade in gold you have to buy virtual gold. This minimum can be ₹ 10. And after this, all the gold you buy will be added to your demat account. You can sell it again any time later.
This virtual gold will be with your demat account company. But if you want, you can also get it in physical form. This means that even if you are buying gold digitally. But in reality, you must be buying physical gold.
Currently, the way you have to pay taxes to buy shares in the stock market. Taxes of the same manner may also have to be paid on gold. Let us tell you for information that currently there is very little tax on real gold imported. And there is a lot of debate in the country about this too.
In such a situation, if the gold exchange opens, then the tax on it may also increase. At the same time there will be an increase in tax collection. There will be transparency in gold prices and people will gain confidence in it.
Why is gold exchange important in India?
Now the question arises here that why there was a need for gold exchange in India? Currently, gold prices in India are fixed according to international prices. And it is fixed for 24 hours.
There is a gold market in every city in India. Where customers get money by selling their gold. Every city in India has different prices for gold. This leaves both customers and traders confused about the prices. Sometimes this difference is so much that gold can be sold from one city to another.
At the same time, India is included in the world’s largest gold importing countries. In such a situation, the need for transparency about gold prices has been felt for a long time. You have been told for information that India has been importing about 900 tonnes of gold every year. India is witnessing a steady increase in gold imports.
At the same time, there are constant fluctuations in the prices of gold. The gold which was continuously getting cheaper for the last few months. India is witnessing an increase after the second wave of Corona. In such a situation, to reduce this fluctuation, it is necessary to have a gold exchange in India.
There are 2 types of gold buyers in India. The first are those who see gold as a saving. In India, people buy gold in large quantities in villages. And sell it only in local markets.
Farmers in India buy gold from a large portion after selling the crop. And remain relaxed about its prices.
However, whenever you go back to sell gold, they always get a lower price. And there is always a complaint that the price of gold was high at the time of purchase. Whereas now the price of gold is low. All this is due to lack of transparency in gold prices and this complaint can be resolved through the Gold Exchange.
|MONTH||24 carat gold price (lower in INR) per 10 gram||24 carat highest gold price (highest in INR) per 10 gram|
The other buyers in India are wholesale traders. Those who buy gold in large quantities. And trading it internationally. In such a situation, these people will also be able to trade in India. With which the tax collection of the Government of India is also expected to increase. As much as gold training is done in a village in India. She almost refrains from paying taxes. In such a situation, it has become necessary for the Government of India to set up a gold exchange to increase its tax revenue.
Import of gold in India Talking about the month of March, gold has been imported in India at a record level. 160 tonnes of gold have been imported into India. India has witnessed a 471% increase in gold imports. Which is a concern for the Reserve Bank of India.
Due to the increasing effect of the corona virus, gold imports could see an even greater increase in the coming months. Since the second wave of Corona virus in India, gold prices are seen rising again. In March, the Indian government imported gold worth $ 8.4 billion. Which is the highest in 1 month after 2012-13.
On the other hand, if we talk about the whole year, India has imported gold worth more than about 34 billion dollars. It has not seen any growth here. But all this was caused by a lock-down. There has been a lock-down in India for over 6 months. Due to this, this decline in gold is being seen annually.