One of the fastest growing sectors in the country is the gems & jewellery sector that approximately raises 6-7 per cent of the country’s GDP. India is not only the world’s largest consumer of the gold bullion, gold jewellery and gold ornaments but also the world’s largest cutting and polishing centre for diamonds.
When it comes to gold and diamond bullion, people have always considered them as a safe and rewarding investment option. It’s a generation misconception that gold bullion includes the rectangular gold bars only. But, in reality, gold bullion stands for any recognized fineness and weight of gold that you buy at the present price of gold. The additional cost is incurred for the expense of fabricating and refining the gold bullion.
Skilled labour is the backbone of gems & jewellery industry
The availability of highly skilled labour allows India to flourish as a hub of the global jewellery market. According to the statistics given by Gems and Jewellery Export Promotion Council (GJEPC), India exports 95 per cent of the world’s processed diamonds. The bullion traders are opening new roads to the Foreign Exchange earnings and adding to the economy.
Heading towards India’s first Bullion Exchange
For establishing India’s first bullion exchange through a Special Purpose Vehicle (SPV), India Bullion and Jewellers Association (IBJA) have also signed a pact with the Bombay Stock Exchange (BSE). The stakes will be divided in the ratio 70:30 between the IBJA and BSE respectively. Hence, the demand for jewellery is surely going to increase with various innovations and coming of large retailers in near future.
IGC making investment in gold bullion a productive option
Minted in India, India Gold Coin (IGC) is a part of the monetisation scheme issued by the union government last year in November. It is the first national gold coin of India with the face of Mahatma Gandhi on one side and the Ashok Chakra engraved on the other side. With tamper-proof packaging and anti-counterfeit feature, along with 24 karat purity and 999 fineness, IGC is considered to be a great substitute for the imported gold.
Gold bars & coins and diamond bullion are going to retain their charm as a great investment option because of their easy purchase option and fair liquidity.