Many global banks will be planning for majors programs to get into bullion trading within India as the country seems to have emerged as one of the biggest and most active industry for spot and online gold trading.
This could herald a boom of online gold trading in India. India imports and uses a significant volume of the yellow metal in the world and is attracting global gold trading companies. India brought in nearly four hundred tonnes of gold in 2008. Precious metal imports and sales seemed to be slow in 2009, but analysts have forecasted that bullion industry will continue to be booming in India in the years to come.
As a result, top global banks are coming out online gold trading plans in India. These companies include HSBC, Scotiabank, Standard Bank as well as Citibank. The plans from these banks include launching whole sale trading and hedging in gold, import of gold and working with India’s regional banks to sell gold coins and begin several precious metal deposit schemes.
Scotiabank is Canada’s second major financial institution, is in the final stages regarding launching trading and hedging in gold and other valuable metals like diamonds, platinum and palladium within India.
In the event that Scotiabank is given permission, the bank may enter into a proper tie up with either HDFC Bank or even ICICI Financial institution to commence trading in gold and some other precious metals via India’s commodity exchanges. Scotiabank is planning to establishing a wholly owned subsidiary to trade in gold.
At present, Scotiabank has branches in major Indian metropolitan areas like New Delhi, Mumbai, Bangalore as well as Coimbatore. The Canadian bank now plans to improve its branch system in India. A Scotiabank official informed Commodity Online that they are planning to foray in to commodities trading in India, saying “Our focus on is gold, as for people in India, gold is the greatest investment business.”
India permits an overseas investment as much as 100% under the automatic route within the wholesale cash and carry trading and trading for exports.
Scotiabank is among the Northern America’s leading financial institutions. It features a presence within 50 countries with over 2,000 branches. India, financial majors like ICICI and HDFC and India Post, the postal arm from the government of India, are actually aggressively promoting gold trading and gold coin product sales.
Experts say plans through foreign participants like banks to enter into precious metal trading within India bodes well for the massive bullion industry in the nation. India is the largest importer and user of gold on the planet. Therefore it makes sense for banking majors to cash in on the online gold trading business in that country.
The Indian gems and jewellery industry is among the fastest developing segments within the Indian economy with an annual growth pace of approximately 15 percent.
The nation is also the largest consumer of gold on the planet. It uses nearly eight hundred tonnes of| gold that accounts for 20% of world gold consumption, which nearly 600 tonnes are going into making jewellery.
India can also be emerging as the earth’s largest buying and selling center for gold targeting US$16 billion by 2010. The industry has the best experienced manpower for designing and producing higher volumes of exquisite jewelry at low labor expenses.
Source by Daniel S.
Online Gold Trading Boom Coming To India?
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