Interview with Mr. Prithviraj Kothari, MD, RSBL

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1) What will be the effect of the new PMLA Act on bullion industry?
PMLA act is an international act on terrorism etc. They have added the precious metals traders recently but the rules and regulations are not formed yet. If the act covers the retail investors also, even then the impact will be negative.
2) What is the real picture of India now in terms of bullion trade?
 6% import duty is ok as it depends on price. In a country of population of 102 crore where 110million dollar value of marriage ceremony happens, where 800+tons of gold import happens, so I don’t think there will be drop down in import figure due to the duty hike.
3) What about the minted products and paper products growth in India?
Till date Indian people believe in having physical gold in their hand. 70% of the buying happens in rural India and they don’t have demat account. So physical gold demand will always be there. The demand for paper gold increases slowly but it all depends on the equity side.
4) There are number of refineries coming into India. What is the reason behind this rush?
The import duty on raw gold is 6%, the customs duty on dore bar is 4% and the excise duty is 5%. So there is a difference of 1% between the raw gold and dore bar and the refiners try to utilize this difference. There is no internationally recognized refinery in India so far.
5) The MMTC PAMP of India is very much positive in getting LBMA accreditation in the near future. Is that good news for the industry?
If MMTC PAMP gets accreditated by LBMA, then it will be good news for the industry. If by this means the house hold gold comes into the market and then re-exported as bars excluding the value addition then lot of the issues will be solved and CAD will also come down. The two way trade can be initiated.
6) How to increase the Indian gold trade to other nearest countries like Sri Lanka, China, Bangladesh etc .?
If the government makes the gold jewellery 100% regulated or hall marked then it will build trust among people. So by this the trade to the near countries will be increased.
7) How is the platinum jewellery market in India?
Now the price of platinum is down compared to the gold price. Slowly the interest of people towards platinum investment is increasing. It is the rare metal with huge industry usage. RSBL has already started the platinum coin selling in last two years. One can buy platinum coins from 1gram to 50 gram in RSBL also. We have started online trading i.e. the two ways buying and selling of platinum also.
 8) How do you find the Dubai Precious Metals Conference?
It is an excellent conference. I have come for the first time.  There is gathering of 340 participants around the world. Foretell Business Solutions Ltd. and DMCC have done excellent job.

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