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Taking Gold to digital consumers will increase awareness on purity and responsible Gold

Mr. Krishna Hegde, President – Consumer, MMTC PAMP India Private Limited

 

Digital Gold is different from the OTC market:

 

• Digital Gold is not a trading platform but is only a mechanism to make Gold more accessible and easy for consumers to buy and sell India

 

• A consumer has access to a live buy sell price 365 days a year, 24 hours a day.

 

• It is always going to attract retail customers and not institutional buyers owing to the bid ask spread.

 

• The minimum quantity sold and bought is also not a constraint in Digital Gold. Minimum purchase value if Re 1.

 

• You could compare our Digital Gold offering more with Gold accumulation plans running successfully in countries like Turkey and Malaysia.

 

• After MMTC-PAMP launched Digital Gold with Paytm in October 2016, the market has seen a few more entrants along with exits in a short span of 2 years.

 

• The main thing a digital Gold provider will need to ensure is the ability to manage liquidity throughout. Else, we will see players exit.

 

• Today there are 3 major providers of Digital Gold who have partnered with over 30 platforms including Paytm, Google Pay, Phonepe, Motilal Oswal etc.

 

• We are hopeful that taking Gold to digital consumers will increase awareness about aspects like purity and responsible Gold, which have until now been a black box for the Indian consumer. This in turn should drive

Gold producers in India, if they want a piece of the Digital pie, to move towards an organised sector and comply with global quality standards.

 

Disclaimer: Views are personal and not the views of the publisher.