Page 22 - Bullion World Issue 12 Volume 05 December_2025

Bullion World | Volume 5 | Issue 12 | December 2025

The GoLd

refininG IndusTrY

- PerforMAnce &

PersPecTives of 2025

Mr Vidit Garg, Director, Kundan Group

M/s Kundan Refinery Pvt. Ltd. is in the gold refining
business for the last more than a decade. It is one of
the top most refineries in India with state-of-the-art
technology. During the past decade, the group has
seen many ups and downs in the refinery industry.
However, the year 2025 was unprecedented in many
ways and can be termed as rarest of the rare year.

On one side, there were geopolitical issues such
as continuation of Middle East War, Russia-Ukraine
conflict and Indo-Pak confrontation. On the other side,
the weaking of US dollar, global inflationary pressures
and USA fluctuating policies on tariff, etc. All these
factors led to surge in gold price to an all-time high and
reflected steep rise to the extent of 50%-60% touching
USD 4300 per Troy ounce. All these factors contributed
it as one of the golden years for the refinery industry
as the demand for the final product soared to all time
high and refineries were working round the clock to
meet the demand. Besides increase in volume, refinery
business earned good profit also.

The increase in demand can be attributed to sharp
increase in the gold price which in turn can be due Mr Vidit Garg
to many of the investors who were earlier investing
in other assets such as Real Estate, diverted their
investing in gold. Investors were buying gold even
at higher and higher prices so as to not to miss
an opportunity as they conceive it. Moreover, gold The big demand posed big challenges also for the
remains safe haven and hedge against inflation. industry. The major challenge was from supply chain
side. For the basic raw material which is gold dore bar,
Besides investors flocking the gold, most of the Central there was scramble for procurement. The supply was
banks of the countries also started accumulating gold limited whereas the demand was high. This was further
in a big way. constrained as there was no import of gold permitted
from UAE since April 2025 under TRQ/Qualified
The demand got further boost from electronic and Jewellers scheme. The refineries have to be extra
renewable energy sectors which became flavors of the cautious as towards quality, legal procedures and safe
government push. guarding prevention of money laundering act.

22