Calcutta: The Indian gold industry has announced the formation of a self-regulatory body called Indian Association for Gold Excellence and Standards (IAGES), which will be operational by early 2025.
The national industry associations — Indian Bullion and Jewellers Association (IBJA), All India Gems and Jewellery Council of India (GJC) and Gem and Jewellery Export Promotion Council (GJEPC) supported by the World Gold Council — have together formed the SRO with an aim to increase consumer confidence and enhance trust through encouraging the adoption of fair, transparent and sustainable practices and regulatory compliance, a statement issued on Tuesday said.
Establishing a code of conduct and introducing an audit framework would also come under the ambit of the SRO.
“IAGES will be independently governed and professionally managed. The code of conduct created by it will be available for everyone from the industry, however, its adoption will be entirely voluntary,” the statement said.
“Self-regulation will help empower stakeholders to build a sustainable and trusted gold market,” said Sachin Jain, regional CEO, India, World Gold Council.
“IAGES will not only strengthen India’s position as a global gold hub but also drive innovation and growth within the industry,” said Vipul Shah, chairman, GJEPC.
“Our long-term objective will be to make this industry more transparent, compliant and play a larger role in our nation’s GDP,” said Saiyam Mehra, chairman, GJC.
“Through the creation of a self-regulating entity, we are proactively fostering trust and confidence among government bodies, consumers, investors and international partners within the Indian gem and jewellery domain,” said Prithviraj Kothari, national president, IBJA.
Prices plunge
Gold prices plunged by ₹1,100 to ₹71,700 per 10 grams in Delhi on Tuesday due to weak demand from jewellers. In Calcutta, pure gold bar prices were down ₹300 to ₹69,550 on Tuesday.
Traders said gold prices dropped due to reduced demand from jewellers and retail buyers. However, analysts are optimistic that domestic gold prices will look up.
“The Fed’s potential monetary easing and rising geopolitical tensions, particularly in West Asia, should continue to support gold prices. Looking forward, gold is expected to attract new buyers amid continued equity market volatility. With potential prices reaching $2,600 an ounce by 2025, gold remains a valuable hedge against geopolitical shocks and economic instability,” said Riya Singh – research analyst, commodities and currency, Emkay Global.
