Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
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IMPORTED GOLD BARS<br />
The 10 tola bar (3.75 oz) dominates the <strong>Indian</strong> gold bullion market.<br />
More than 95% of gold imported for the domestic market is in the form of these small cast bars, widely known as TT<br />
bars or biscuits.<br />
Most imported TT bars are produced by 8 major gold refiners in Switzerland, South Africa, Australia and the United<br />
Kingdom.<br />
In recent years, India has imported 5 – 6 million TT bars annually.<br />
10 TOLA BARS<br />
Domestic fabricators and retailers rely on TT bars.<br />
The bars enable the trade to buy and sell gold in small quantities, often on a daily basis, in a market where the gold price<br />
cannot be hedged.<br />
A TT bar has a gross weight of 10 tolas, equivalent to 3.75 oz or 116.638 g.<br />
At the standard millesimal gold purity of 999, its fine gold content is 3.746 oz.<br />
The fine gold content at other purities is defined by the London Bullion Market Association (LBMA): 3.731 oz (995) and<br />
3.750 oz (999.9).<br />
As an <strong>Indian</strong> unit of weight, the tola has been used since 1836, when England’s East India Company administered much of<br />
India. Tola is a Hindi word, derived from the Sanskrit word tula, defined as a balance, scale or weight.<br />
KILOBARS<br />
Kilobars are popular among jewellery exporters.<br />
Jewellery exporters tend to be large fabricators. They are also able to loan gold at an unfixed price from banks and other<br />
importers such as MMTC Limited. Unlike fabricators for the domestic market, their stock of gold is not exposed to<br />
movements in the gold price during the process of fabrication and sale to overseas customers.<br />
The fine gold content of a kilobar (1000 g) in troy ounces at different purities is defined by the LBMA: 31.990 oz (995),<br />
32.119 oz (999) and 32.148 oz (999.9). Most imported kilobars have a purity of 995.<br />
In recent years, India has imported around 30 – 40,000 kilobars annually.<br />
The standard millesimal purity of TT bars is 999.<br />
AN INTRODUCTION TO THE INDIAN GOLD MARKET 51