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TOPIC:
GOLD EXPORTS
 GROUP MEMBERS
‡ Lokesh Bharadwaj - 04
‡ Sanchitha Gopalkrishnan - 11
‡ Karan Kanchan - 15
‡ Devashish Nabhi - 20
‡ Vicky Pohuja - 35
‡ Snehali Sahu - 41
 Gold & India
‡ c
c is the largest consumer of gold in the
world to be followed by China and Japan.
‡ India is emerging as world's largest trading
centre of this commodity with a target of
US$ 16 billion set for 2010.
‡ India¶s Gem and Jewellery industry has
registered an impressive 38.15 percent
growth in exports in rupee terms in just
concluded fiscal 2007-08.
‡ Gold Bar Exports registered a growth of
1.28 percent with exports recorded at $
3861.57 million in fiscal 2007-08 as
compared to $ 3812.88 million in financial
2006-07.
‡ Top export markets for the Indian
Gem and Jewellery products
Ò The United States ± 28%
Ò Hong Kong ± 21 %
Ò UAE ± 15%
Ò Singapore ± 9%
Ò Belgium ± 8%
± gold is the only form of international
monetary reserves, hence a balance-of-
payments deficit (surplus) causes gold
outflow (inflow)
± country must guarantee complete back-
up of domestic currency with gold
Balance-of-Payments Adjustment
Mechanism Under Gold Standard
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History of Gold Prices
 Procedure for Export of
Gold
(i) the shipping bill and the invoice along with
packing list presented to the authorized
officer shall contain the following:
(a) description of the items;
(b) weight and purity of gold or silver or
platinum and the type of gems stone, such
as, diamond, ruby, sapphire, cubic zircon
and the like which has been used for
studding and its weight in carats; and
(c) free on board price rate of the jewellery
item and quantity in pieces and the total
value;
(ii) the Unit may export jewellery on the basis of a
notional rate certificate issued by the Nominated
Agency and this rate will be based on the
prevailing Gold or US Dollar rate and the US
Dollar or Indian Rupees rate given in the notional
rate certificate.
Provided that the certificate issued by the
Nominated Agency shall not precede the date of
shipment by more than three working days or as
may be notified by Central Government;

(iii) the Unit obtaining gold or silver or platinum

from the Nominated Agency on loan basis shall
export gold or silver or platinum jewellery within
the period prescribed for the same under the
Foreign Trade Policy:
Provided that the unit can convert such loan into
outright purchase by paying the outstanding loan
amount plus interest provided they exercise this
option within the period prescribed under the
Foreign Trade Policy.
(iv) in the case of export of jewellery
on the basis of notional rate certificate
issued by the Nominated Agency, the
Unit may fix the price and repay the
gold loan within the prescribed period
for export as may be notified by the
Central Government from time to time:
Provided that the price shall be
communicated to the Nominated
Agency for issue of a certificate
showing the final confirmation of the
rate to the bank negotiating the
document.
 Following were the
questions.......
‡ Commodity dealt with
‡ Major concentration- export/import
‡ Major countries (clients/customers)
‡ Risks involved in export of gold and
exchange rate fluctuations
‡ Effect of rise in gold prices
‡ Impact of Recession on trade of
gold
uestions contd«..
‡ Usage of and risk involved in
Letter of Credit
‡ Form GR
‡ Involvement of confirming bank
‡ Government rules and regulations
 Analysis«.
‡ Export- Cut & polished
diamonds, Precious & semi-
precious stones, plain &
studded gold jewellery and
gold bars.

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.A.E
. .A
E.
A EA & E
‡ Risk involved- volatility of price
fluctuations.
‡ Demand for gold reduced by 20-
25% in the last fiscal year.
‡ Studded Jewellery movement
has not been affected to a great
extent.
‡ Plain gold (gold bars), the
demand has reduced.
 Gold in Recession

‡As economic woes deepen, increasing numbers of

consumers are seeking to cash in their idle assets including
jewellery.
‡Many grooms used to give brides rings, earrings,
necklaces and bracelets. Now more couples are
exchanging wedding rings only.
‡ All bills are on D/A or C.O.D
basis.
‡ All of the precious cargo
shipment is done through
Diamond Plaza Custom
Clearance (DPCC).
‡ Use of GR form for regulating
foreign exchange currency.
‡ Confirming banks - Authorised
Dealers (ADs) with foreign
exchange branches abroad.
Forward rates
 Future
‡ The gold price should skyrocket because
of the bailouts the US government and its
central bank are making.
‡ The US Treasury and the Fed have to
create all these dollars being spent on
bailouts out of thin air adding to the
"money" supply, devaluing the US dollar.
The US federal government is broke.
‡ The gold price is definitely going up. It is
already making new highs in other
government fiat tokens.
 Conclusion
‡ Gold is the ultimate solution to all
your woes during a recession time
like this.
‡ This lesson was learnt by one and
all across the globe following the
meltdown triggered by the sub prime
crisis in the US.
‡ People across the globe are now
digging out their old jewellery and
selling them off to tide over the crisis
after the recessionary trend slowly
squeezed out their savings.