Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

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152 Perspective Key features at the retail level Gold bullion Bank importers Bullion dealers Pricing an imported 10 tola bar Gold jewellery Fabricators Wholesalers Retailers PRICING AND PROFITABILITY Gold refining Organised refiners Small refiners Minted coins and bars Organised fabricators Small fabricators Retailers CHAPTER 8 CONTENTS Photograph: Tribhovandas Bhimji Zaveri India is one of the few countries in the world where gold jewellery – superbly fabricated – can be bought with a mark-up of 25% or less above the prevailing value of its gold content. AN INTRODUCTION TO THE INDIAN GOLD MARKET
PRICING AND PROFITABILITY Bank importers normally mark-up imported TT bars by around 0.1%. Secondary and lower tier bullion dealers rely mainly on movements in the gold price for their profitability. Gold jewellery is typically retailed at a declared price ranging between 5 - 25% above the prevailing gold price. Retailers that sell gold jewellery with the correct caratage tend to have a gross profit (after fabrication costs) of less than 10%. Wholesalers generate a gross profit of 2 - 3%. Most goldsmiths earn between Rs 4,000 – 15,000 (US$ 80 - 300 per month). Small refiners can charge as little Rs 10 (US$ 0.20) per 10 g to refine small quantities of old gold jewellery. Coin fabricators charge between Rs 20 – 60 (US$ 0.40 – 1.20) to make a 10 g coin. Retailers usually sell a 10 g coin at a mark-up of less than Rs 50 (US$ 1.00). PERSPECTIVE This section can only provide indicative information. Pricing and profitability for each trade category can vary regionally, within cities, and in the rural areas. While there is some reference to the pricing of smaller businesses, the section focuses mainly on top end businesses for two reasons. Within cities (and nationally), top end jewellery retailers are important as retail conduits. Although their standard prices tend to be higher, the important point is that even these higher prices are extremely low by Western standards. Tax elements Reference to Customs duty, and State and municipal taxes, is usually omitted in this section for two reasons. Standard bullion prices can sometimes incorporate these taxes. State sales and other taxes, applicable to jewellery and other products, vary. For example, the State sales tax applied to gold jewellery in the 4 main cities ranges from 1% in New Delhi to 4% in Chennai. The level of taxes can also change. KEY FEATURES AT THE RETAIL LEVEL Prices are “unfixed” at every level. The prices of all gold products are generally unfixed, linked to the prevailing gold bullion price at the time of the transaction. Although some of the national retail jewellery chains, established since the mid-1990s, have started selling branded jewellery at fixed prices, their combined volume accounts for less than 1% of the market. Customers require a breakdown of charges. Customers, at every level, normally require a detailed breakdown of all charges. For example, jewellery retailers are expected to advise customers of the value of the carat gold content, the fabrication or “value addition” charge (including not only the “labour” or “making” charge to fabricate the item, but also in many cases the “wastage” factor), the value of the precious or semi-precious stones if the item is studded, and the relevant taxes. Customers ask what price they will receive if they sell back or exchange the item. Many retailers observe that this question is almost invariably asked at the time of purchase. For most customers, jewellery is viewed as a tradable asset. Customers bargain. Buying, exchanging or selling jewellery, bars and coins invariably involves some bargaining between the customer and the retailer, even though the discount tends to be small as the retailer’s gross margin above the prevailing gold price is generally so low. AN INTRODUCTION TO THE INDIAN GOLD MARKET 153
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AN INTRODUCTION TO THE INDIAN GOLD
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INDUSTRY SUPPORT MAJOR SPONSOR CORP
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PREFACE An Introduction to the Indi
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ACKNOWLEDGEMENTS GIR FIELDTRIPS GIR
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Raman Jethi Ramchand Popley Ramesh
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SUMMARY AND POSITIVE FINDINGS BACKG
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SUMMARY AND POSITIVE FINDINGS To ma
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SUMMARY AND POSITIVE FINDINGS The a
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SUMMARY AND POSITIVE FINDINGS POSIT
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SUMMARY AND POSITIVE FINDINGS INDUS
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ROLE OF INDIAN GOVERNMENT The India
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ROLE OF INDIAN GOVERNMENT The Depar
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ROLE OF INDIAN GOVERNMENT OFFICIAL
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ROLE OF INDIAN GOVERNMENT In summar
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ROLE OF INDIAN GOVERNMENT GOLD CONT
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ROLE OF INDIAN GOVERNMENT LICENSED
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MAP OF INDIA There are 28 States, 6
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POPULATION URBAN AND RURAL State Mi
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POPULATION HOUSEHOLDS - SPLIT BY SO
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ECONOMIC INDICES STATES - INDICATIV
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AGRICULTURE VALUE OF AGRICULTURAL O
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AGRICULTURE MAJOR CROPS - NORMAL AR
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MONSOONS PERFORMANCE OF SOUTH WEST
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IMPORTED GOLD BARS The 10 tola bar
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IMPORTED GOLD BARS 10 TOLA BARS AGR
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IMPORTED GOLD BARS GOLD WEIGHT CONV
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The fine gold content of a London G
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BULLION IMPORTERS UNOFFICIAL IMPORT
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BANKS IMPORTED BULLION PRODUCTS Ban
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WHOLESALING TO DOMESTIC BULLION DEA
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BANKS BACKGROUND INFORMATION ON BAN
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BANKS GOLD CELL BRANCHES Region/Sta
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GOLD DEPOSIT SCHEME DISTRIBUTION Th
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GOLD DEPOSIT SCHEME The State Bank
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PUBLIC SECTOR UNDERTAKINGS BRANCHES
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Region/State City MMTC HHEC STC PEC
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NON-RESIDENT INDIAN (NRI) GOLD IMPO
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BULLION DEALERS A secondary tier bu
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GOLD REFINERS SMALL REFINERS There
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COIN FABRICATORS Corporate gifts Al
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COIN FABRICATORS A bullion dealer t
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BAR HOARDING Some trade entities in
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BULK DELIVERY OF OFFICIAL GOLD IMPO
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BULK DELIVERY OF OFFICIAL GOLD IMPO
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PERSPECTIVE INDIA The gold jeweller
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GOLD JEWELLERY PRODUCTS Handmade je
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REGIONAL JEWELLERY STYLES KOLKATA K
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REGIONAL JEWELLERY STYLES AHMEDABAD
Page 103 and 104: REGIONAL JEWELLERY STYLES SWAMI JEW
Page 105 and 106: JEWELLERY FABRICATORS All centres,
Page 107 and 108: JEWELLERY FABRICATORS JEWELLERY WHO
Page 109 and 110: TRADITIONAL JEWELLERY RETAILERS Sta
Page 111 and 112: TRADITIONAL JEWELLERY RETAILERS Coi
Page 113 and 114: TRADITIONAL JEWELLERY RETAILERS ANT
Page 115 and 116: TRADITIONAL JEWELLERY RETAILERS Man
Page 117 and 118: ADORNMENT DIMENSION Gold jewellery
Page 119 and 120: GOLD JEWELLERY CONSUMERS MARRIAGES
Page 121 and 122: GOLD JEWELLERY CONSUMERS Among larg
Page 123 and 124: GOLD JEWELLERY CONSUMERS RURAL VERS
Page 125 and 126: GOLD JEWELLERY CONSUMERS Gold jewel
Page 127 and 128: GOLD JEWELLERY CONSUMERS INDICATIVE
Page 129 and 130: LUNAR CALENDAR Mumbai (Maharashtra)
Page 131 and 132: BRANDED JEWELLERY RETAIL CHAINS DIS
Page 133 and 134: Region/State Gili Tanishq Carbon In
Page 135 and 136: HALLMARKS In accordance with BIS pr
Page 137 and 138: HALLMARKING Most jewellery in the W
Page 139 and 140: SOURCES OF GOLD BULLION Jewellery e
Page 141 and 142: Location US dollars in millions % S
Page 143 and 144: Plain gold jewellery Location US$ m
Page 145 and 146: INDUSTRIAL GOLD USAGE Since the rep
Page 147 and 148: INDUSTRIAL GOLD USAGE IMITATION GOL
Page 149 and 150: MUMBAI GOLD PRICES Indian gold pric
Page 151 and 152: MUMBAI GOLD PRICES INDICATIVE DIFFE
Page 153: MONTHLY 2000 - 2001 2000 MUMBAI LON
Page 157 and 158: Recycling of old gold scrap and bar
Page 159 and 160: JEWELLERY WHOLESALERS Jewellery who
Page 161 and 162: Hallmarking charges The few hundred
Page 163 and 164: PRICING AND PROFITABILITY MINTED CO
Page 165 and 166: GOLD MINING AND EXPLORATION For 36
Page 167 and 168: Year Tonnes Year Tonnes 1970 3.241
Page 169 and 170: GOLD SUPPLY AND DEMAND Movements in
Page 171 and 172: GOLD SUPPLY AND DEMAND The trade at
Page 173 and 174: For the domestic market 1990 - 2001
Page 175 and 176: GOLD SUPPLY AND DEMAND INDICATIVE G
Page 177 and 178: GOLD SUPPLY AND DEMAND INDICATIVE A
Page 179 and 180: WORLD GOLD COUNCIL The World Gold C
Page 181 and 182: WORLD GOLD COUNCIL TRADITIONAL GOLD
Page 183 and 184: WORLD GOLD COUNCIL LOCAL FESTIVALS
Page 185 and 186: WORLD GOLD COUNCIL YOUNGER GENERATI
Page 187 and 188: Indian Overseas Bank Precious Metal
Page 189 and 190: REFINERS AND COIN FABRICATORS WEST
Page 191 and 192: BIBLIOGRAPHY Agricultural Statistic
Page 193 and 194: ABOUT GRENDON INTERNATIONAL RESEARC
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