The bullion business in banks

When something is too good to be true it generally isn't. The fallout from complex derivatives has thrown the spanner in the money spinning machine for banks and has ended the dream run of the lucrative derivatives business. Back to hard work in the treasury business, banks are scouting for relatively risk-free business opportunities to reinvigorate their treasury income without investing more risk capital. The largely overlooked bullion business may prove to be just the answer.

Traditionally, bullion business has been dominated by a handful of banks and designated importers. Net imports of gold rose to 266 tonnes during the third quarter of 2008. However, the participation of banks in this relatively risk-free business has been largely skewed.. Fashion accessories are decorative items that supplement one's garment, such as fashion jewellery, gloves and tights.Jewellery for sale here,we aupply womens accessories,jewellery rings,gold jewell Though 19 banks have been authorised to undertake import of gold, most of the bullion business is concentrated with five banks.Gold business is transac. Fashion accessories are decorative items that supplement one's garment, such as fashion jewellery,wholesale jewellery.ted by banks in India primarily through three product offerings — consignment business,. Fashion accessories are decorative items that supplement one's garment, such as fashion jewellery,gold jewellery,women's jewellery.You can wholesale jewellery. gold on loan scheme and gold coin business. The contribution of gold consignment business has steadily reduced over the years given the flexibility offered by the gold on loan scheme and reluctance of jewellers to assume gold price risk.

Through most of 2009, the gold coin business was largely ignored on the back of increasing prices. Historical data suggests an inverse correlation between gold prices and demand for imported gold as domestically recycled gold supply compensates for reduced imports.During the first quarter of 2009, the supply from domestically recycled gold increased to 64 tonnes from 20 tonnes during the previous quarter.. Fashion accessories are decorative items that supplement one's garment, such as fashion jewellery,jewellery rings,gold jewellery,women's jewellery.You can wholesale jewellery. Apart from the product offerings in the physical gold business, banks are permitted by the RBI to offer bullion forward to enable customers to hedge their gold price risk. The popularity of the gold on loan scheme has diminished the utility of bullion forwards as a hedging tool.
With increasing volatility in gold prices and variable demand patterns for imported gold, banks with relatively lesser penetration in the bullion business have an opportunity to leverage their extensive branch networks to capitalise on retail demand from the gold coin business.