Prime Minister Narendra Modi Launches India's First International Bullion Exchange in Gandhinagar
On July 29, 2022, Prime Minister Narendra Modi has launched India's first International Bullion Exchange in Gandhinagar, Gujarat. The exchange has been launched at International Finance Tech-City (GIFT City) near Gandhinagar. This exchange will sell physical gold and silver.
It is targeted to be set up on the lines of Shanghai Gold Exchange and Borsa Istanbul, to make India a
major regional center for bullion flows. Let’s educate that this exchange has been launched after a delay of one year, several trials and dry runs.
What is bullion? Bullion refers to physical gold and silver of high purity, held in the form of bars, ingots or coins. Bullion can sometimes be considered legal tender. It is often held by central banks as gold
reserves or held by institutional investors.
What is the purpose of bullion exchange?
In the 1990s, gold imports were liberalized through nominated banks and agencies. After that, for the first time, qualified jewelers in India have been allowed to import gold directly through IIBX. So this exchange is very important in itself.
For this, the jewelers need to be a trading partner or client of an existing trading member. The exchange has set up the necessary infrastructure for the storage of
physical gold and silver.