Page 7 - Bullion World Volume 5 Issue 07 July 2025

Bullion World | Volume 5 | Issue 07 | July 2025

What began as a cautious allocation with gold
constituting just around 5–6% of total forex reserves
in 2015 has evolved into a robust diversification
strategy that reflects both global economic realities
and prudent reserve management. By March 2021,
EDITORIAL gold’s share in the forex reserve basket stood at
5.87%, marking the beginning of a notable upward
trajectory. In the subsequent years, the RBI steadily
increased its gold holdings, pushing the share
Dear Readers, to 8.1% by March 2024. This growth continued,
reaching 9.32% by September 2024 and culminating
The Indian government’s recent move to harmonise in an all-time high of 11.7% by March 2025. How far
HS codes for platinum group alloys (Chapter 71) and can this go? We need to wait and watch. But RBI's
Organic or Inorganic Compounds of Precious Metal message is clear. Gold is a mainstream asset class
(Chapter 28) is a commendable step towards ensuring now and an effective portfolio diversifier.
transparency and integrity in the bullion trade. This
initiative is not just a technical correction—it reflects In this edition of Bullion World, we begin with the
the government’s broader vision to transform key takeaways from the recently concluded APPMC
India into a transparent and ethical bullion hub. 2025, setting the tone for the future of the precious
The harmonisation enhances India’s credibility in metals industry. This is followed by a compelling
the global bullion market, offering reassurance article from Ms Desirée Binternagel, CEO of Fairever,
to international trading partners, investors, and on the growing momentum behind ethically sourced
standard-setting bodies that compliance and gold. We then explore the evolving PGM landscape
accountability are sacrosanct. with insightful commentary from Ms Rhona
O’Connell, offering a glimpse into the challenges and
The Directorate General of Foreign Trade (DGFT) had shifts shaping the sector. Mr Moses Bodea of Gold
received over 3,900 applications this year compared Invest shares how gold savings are being integrated
to last year’s 1,400 applications for availing TRQ with modern payment systems, while Mr Spencer
(Tariff Rate Quota) under which gold can be Campbell provides a timely guide on the upcoming
imported at 1% less basic customs duty. While this UAE E-Invoicing mandate and its impact on the gold
increased participation is encouraging, there have trade. We conclude with a feature on Malabar Gold
been ongoing concerns regarding eligibility criteria & Diamonds’ grand launch of their largest integrated
and the removal of threshold limits. Given the DGFT’s manufacturing unit in Hyderabad—cementing their
proactive approach in addressing key issues related global leadership in jewellery production.
to gold bullion imports—often in close consultation
with industry stakeholders—we are confident that Let us know about your thoughts on why the RBI is
a balanced and amicable resolution will soon be ramping up its gold purchases even at these elevated
found. price levels.

Over the past decade, the Reserve Bank of India (RBI) Best wishes,
has demonstrated a measured yet strategic shift in G Srivatsava
its foreign exchange reserve composition. Editor

We would be happy to receive your comments and feedback on the content of this edition,
please write to editor@bullionworld.in

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