On 10th September the Indian parliament approved the launch of the Gold Monetisation Scheme (GMS) and the Sovereign Gold Bond Scheme (SGBS). The GMS and the SGBS have been introduced in an attempt to reduce India’s ballooning gold imports by mobilising the estimated 20,000-25,000 tonnes of gold held by households in India. In this Precious Metals Watch, we discuss the implications of these schemes for gold demand and prices and how likely they are to succeed.
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