Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

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BULLION DEALERS
Imported TT bars are distributed nationwide through secondary and lower tier bullion dealers that fall
below the primary tier of bank and PSU importers.
Bank importers indicate that there are less than 50 significant secondary tier dealers around the country. Some deal
with only one bank, others with several banks.
Some, acting on behalf of large tertiary tier dealers, can order 1,000 TT bars or more at a time.
The banks combined are reported to deal directly with more than 200 secondary tier dealers.
SECONDARY TIER DEALERS
The most active dealers tend to be located in or near, or have strong links with, cities where the State sales
tax is low, notably the following:
State City
Maharashtra Mumbai
Rajasthan Jaipur
Haryana Gurgaon *
Gujarat Ahmedabad
* Adjacent to New Delhi
When dealing with banks and PSU’s, the minimum wholesale order quantity ranges between 50 – 200 TT bars.
Although secondary tier dealers tend to deal only with tertiary tier dealers, some also sell TT bars directly to large jewellery
retailers for fabrication purposes.
While some focus solely on selling TT bars, many are involved in other precious metal-related businesses.
The way secondary tier dealers purchase TT bars is covered in the sections on “Banks” and “Public Sector Undertakings” and
in the chapter on “Pricing and Profitability”.
OTHER DEALERS
The number of tertiary and lower tier dealers involved in the distribution of TT bars runs to thousands
nationwide.
The bullion dealing network is complex because most trade entities act as dealers to varying extents.
For example, all jewellery retailers are “bullion dealers” in that they sell and buy back coins and small bars (and buy back
old gold jewellery) at prices related to the prevailing gold price. Most would sell TT bars, if requested, to retail customers.
Some also act as secondary and lower tier dealers.
DELIVERY
Some secondary and lower tier dealers in cities will deliver TT bars (or arrange delivery) to other dealers or jewellery
retailers in smaller cities, towns and even some villages.
Deliveries are often hand-carried informally by couriers known as “angadias”, travelling by air, train or car.
TRUST
The distribution of TT bars throughout India relies on trust.
The reputation of the dealer is more important than the TT bar brand offered. The distribution chain will normally accept
any well-known brand from a trusted dealer.
AN INTRODUCTION TO THE INDIAN GOLD MARKET