New Delhi : The government should come up with a “national gold policy” focusing on setting up its Exchange and launching of several investment products like gold savings account to put an estimated 22,000 tonnes of idle gold assets into active use, a WGC-FICCI report said.
Among others, the government should also look at establishing a Gold Board for managing import-export, develop accredited refineries, drive gold monitisation by incentivising banks and introduce compulsory quality certification of gold, it said.
“Looking back, gold consumption has averaged 895 tonnes per annum over the past five years, equivalent to just over 4 per cent of current stockpiles. This shows that, if even a small percentage of household gold were monetised, the impact on Indian imports of gold would be substantial,” said the report prepared jointly by the World Gold Council (WGC) and industry body FICCI, released here.
Commenting on the report, WGC Managing Director Somasundaram PR said, “It is imperative to find ways of mobilising and monetising 22,000 tonnes of gold in Indian households to fund economic growth. The need of the hour is to re-engage stakeholders to develop a long-term gold policy.”
Given that Indian consumers do appear willing to consider monetising their gold assets, the report said a strong infrastructure and standardisation of price and quality are essential steps in the process.
There is a need to incentivise banks to engage in the process, revitalise the gold deposit scheme and encourage launch of other gold-backed investment products, it said.
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