Gold markets

India is the largest consumer of gold in the world. Enactment of Gold Control Act in 1962 foreboded gold trade in any form, which continued for almost 30 years. Liberalization in 1991 saw efforts to slowly revive the gold market in the country, in sync with the other sectors of economy.

Thus, since 1991, demand for gold has been increasingly met by official imports. The results are obvious in the form of reduced smuggling, unofficial premiums and enhanced government revenue, by way of customs and sales tariffs.

The increasing gold trade deserves an efficient bullion exchange in India, for which there is a need to develop an efficient spot and forwards market, sufficient liquidity, regular, safe and cheap supply system with good delivery standards are some of the prerequisites for smooth functioning of a bullion exchange.
The recent decision of the International Monetary Fund & other central bankers against selling gold for the next five years signifies the faith placed in this metal by the leading economies of the world. Gold will continue to play a decisive role in world economy in the next millennium.