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Domestic <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> have risen by 10% on a year-to-date basis on the back of the strength in global gold prices, which have surged by 18% year-to-date, driven by robust <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword> purchases, heightened geopolitical risks, and growing expectations of a monetary policy pivot from the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword>, according to the <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="153" meta.entityid="World Gold Council">World Gold Council</keyword>. The reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has ignited a resurgence in gold demand across <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. Reports from the recently concluded India International Jewellery Show indicate a substantial increase in order bookings from retailers, particularly in preparation for the upcoming festive and wedding season. Manufacturers have noted that in some cases, orders have reached levels not seen in several years, underscoring the strong buying interest among <keyword id="21595593" type="General" weightage="20" keywordseo="jewellery-retailers" source="keywords">jewellery retailers</keyword> and consumers alike. The trend of bar and coin buying has also remained robust, with both consumers and jewellers capitalizing on the more attractive prices to stock up for future manufacturing needs. Historical analysis suggests that Indian consumer demand, encompassing jewellery and bar and coin demand, could see an additional 50 tonnes or more in the second half of 2024. This potential increase is fueled by a combination of an initial boost in consumer appetite due to the more attractive prices and a longer-term alignment of local prices with international rates. In a notable shift, domestic gold prices, which had been trading at a discount to international prices for five consecutive months, have now started trading at a premium following the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> announcement. The discount had widened significantly in July, reaching a peak of around $80 per ounce in the third week of the month, driven by subdued demand and an increased supply of gold through various preferential trade agreements and unofficial channels. However, wholesalers who had inventory purchased under the old customs duty regime began selling gold at a premium to the landed cost to mitigate their losses, further supported by increased consumer demand. While the premiums have moderated recently, from $28 per ounce to around USD 5 per ounce, this shift highlights the changing market sentiment and the impact of rising international gold prices and potential inventory valuation adjustments. The changes introduced in the Union Budget, including a reduction in the long-term investment holding period and a lower tax rate, have made gold ETFs a more attractive investment option. Data from the Association of Mutual Funds in India (AMFI) reveals that net inflows into gold ETFs in July amounted to Rs 13.4 billion (approximately USD 160 million), marking the highest monthly inflows since February 2020 and an 84% increase compared to June 2024. Despite these inflows, the total assets under management (AUM) for Indian gold ETFs grew marginally by 0.3% from the previous month, reaching Rs 345 billion ($4.1 billion). This modest increase can be attributed to the 8 % fall in domestic gold prices following the import duty reduction. Year-to-date, net inflows into Indian gold ETFs have totalled Rs 45 billion ($543 million), with total AUMs rising by 48 % from a year ago. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has continued its gold purchasing trend, although at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes--the highest monthly total in nearly two years. Year-to-date, the RBI's gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI's gold reserves have now reached a record 849 tonnes, representing 8.8% of total foreign reserves, compared to 7.5 % a year ago. In July, gold imports remained steady at $3.1 billion, maintaining the stable trend observed over the previous three months. Between April and July, imports averaged $3.2 billion, with volumes ranging between 43 and 47 tonnes during this period. The gold import bill for July 2024 was 11 % lower than the previous year, with an estimated 26% decrease in volume terms, around 47 tonnes. Despite a surge in international gold prices, domestic gold prices in India have experienced a notable decline, primarily due to the 9 % reduction in import duty announced in the Union Budget 2024-25. This policy change has led to a 6% decrease in the landed cost of gold, marking a shift in the domestic gold market dynamics.

Domestic gold prices surge 10% amid global price rally, central bank buying: World Gold Council

<div type="image" title="Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024." msid="115250619" hostid="261" sizebytes="118350" caption="&amp;lt;p&amp;gt;Data from RBI suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024.&amp;lt;/p&amp;gt;"></div> “Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="19977340" type="General" weightage="20" keywordseo="demat" source="keywords">Demat</keyword> account than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2>The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">85,009 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">89,370 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">97,426 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">March 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,02,562 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 2024 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, domestic gold prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2>Hey, wait up for me, says <keyword id="23953567" type="General" weightage="20" keywordseo="las" source="keywords">LAS</keyword></h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="20090034" type="General" weightage="20" keywordseo="association-of-mutual-funds" source="keywords">Association of Mutual Funds</keyword> in India), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2>What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="secured-loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-unsecured lending. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that personal loan delinquencies in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2>How does it work?</h2>Both these loans work on a similar principle: Your loan amount is equal to a certain percentage of the actual market value of your asset. This is known as the <keyword id="20051485" type="General" weightage="20" keywordseo="ltv" source="keywords">LTV</keyword> (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2>Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

Simply Put: Secured Loans 2.0 — why more and more Indians are turning to gold, shares and mutual funds to get loans

<ul><li>Shares of most jewellery companies have rallied in the last one month as <keyword id="46002" type="General" weightage="20" keywordseo="gold-prices" source="Orion">gold prices</keyword> have been rising continuously on inflation concerns.</li><li>Moreover, as the festive season is upon us, demand for gold goes up.</li><li>Check out the latest news updates on Business Insider.</li></ul>Rise in gold prices have boosted shares of jewellery companies in the last one month wherein most companies have delivered double digit returns. “The bullion metal gained strength in yesterday’s session as increasing inflation concerns and a weaker dollar boosted appeal for safe haven gold,” said Prathamesh Mallya, assistant vice president -- research, non-agri commodities and currencies at broking house Angel One. Moreover, with the wedding and festive season on the go, demand for gold got a boost. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">% return in last one month </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Atlas Jewellery </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">27% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Titan </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Renaissance Global </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">19% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Tribhovandas Bhimji Zaveri </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Thangamayil Jewellery </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">PC Jeweller </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Rajesh Exports </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">9% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Kalyan Jewellers India </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">7% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Goldiam International </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr></tbody></table> Gold futures continued to trade higher on Wednesday, October 20. On the Multi Commodity Exchange (MCX), gold futures due for a December 3 delivery, were last seen trading higher by 0.15% at ₹47,352. One of the leading jewellery companies, <keyword id="6359357" type="General" weightage="20" keywordseo="titan" source="Orion">Titan</keyword>, <a href="https://www.businessinsider.in/stock-market/news/shares-of-titan-surge-10-entering-the-2-trillion-club-as-festivities-pent-up-demand-for-gold-jewellery-watches/articleshow/86832311.cms">confirmed </a>that there has been a strong comeback in gold demand in the last three months. “The demand postponement triggered by the second wave of the pandemic in avenues like gift purchases, occasions I milestone buying, weddings, investments in gold etc., witnessed a strong comeback in Q2,” said Titan in a statement to exchanges. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/reliances-oil-to-chemicals-business-seems-to-be-in-the-right-spot-to-leverage-chinas-climate-crackdown/articleshow/87152945.cms">Reliance’s oil-to-chemicals business seems to be in the right spot to leverage China’s climate crackdown</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/airtel-vodafone-idea-shares-spike-after-government-announces-deadline-for-agr-dues-moratorium/articleshow/87153508.cms">Airtel, Vodafone Idea shares spike after government announces deadline for AGR dues moratorium</a>

Titan, Kalyan Jewellers and other jewellery stocks rally in last one month on high bullion prices

Credit rating agency Moody's Investors Service on Tuesday said it has withdrawn <keyword id="10924914" type="General" weightage="50" keywordseo="kalyan-jewellers-india-limited" source="Orion">Kalyan Jewellers India Limited</keyword>'s (KJIL) B2 long-term corporate family rating. The rating outlook prior to withdrawal was stable. "In view of the current market conditions, the company has pushed back its plans to access the international debt capital markets. Moody's has decided to withdraw the rating for its own business reasons," Moody's said. The Rs 9,056 crore revenue <keyword id="413856" type="General" weightage="80" keywordseo="kalyan-jewellers" source="Orion">Kalyan Jewellers</keyword> is the second-largest jewelry company in India. It also has operations in the <keyword id="30350" type="General" weightage="50" keywordseo="middle-east" source="Orion">Middle East</keyword>. The <keyword id="203261" type="General" weightage="50" keywordseo="kalyanaraman" source="Orion">Kalyanaraman</keyword> family (promoter family) and associated companies own 60.53 per cent of Kalyan Jewellers. <keyword id="15035127" type="General" weightage="50" keywordseo="highdell-investments-ltd" source="Orion">Highdell Investments Ltd</keyword>, an affiliate of private equity firm Warburg Pincus &amp; Company US LLC, has a direct stake of 26.36 per cent, said Moody's. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/the-first-annual-breakthrough-agenda-reports-sets-out-priorities-to-rapidly-make-more-clean-technologies/articleshow/94321918.cms">The first annual breakthrough agenda reports sets out priorities to rapidly make more clean technologies</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/rally-in-banking-stocks-continue-as-credit-growth-picks-margins-get-a-boost/articleshow/94324519.cms">Rally in banking stocks continue as credit growth picks &amp; margins get a boost</a>

Moody's withdraws rating of Kalyan Jewellers

Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> declared a war against black money on November 8, when he declared old currency notes of Rs 1000 and Rs 500 as illegal tender. Soon after the announcement, in a bid to convert black money into white, people went in a tizzy to buy gold ornaments and bars. 
 According <keyword id="3081813" type="PERSON" weightage="20" keywordseo="Surendra-Mehta">Surendra Mehta</keyword>, national secretary of <keyword id="2246442" type="ORGANIZATION" weightage="20" keywordseo="India-Bullion-Jewellers-Association">India Bullion &amp; Jewellers Association</keyword> (<keyword id="2085341" type="UNKNOWN" weightage="20" keywordseo="IBJA">IBJA</keyword>), jewellers sold 15 tonnes of gold ornaments and bars, worth around Rs 5,000 crore, on the intervening night of November 8 and 9. 
 
IBJA has 2,500 jewellers registered with it from across the country. 
 "We estimate gold worth Rs 5,000 crore, or around 15 tonnes, was sold between 8 pm on November 8 and 2-3 am the next day, after the PM's <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> announcement,” Mehta told ET. 
 
He also added that more than half of the sales happened in Delhi, UP and Punjab. He claimed that only 1,000 of around 6 lakh jewellers across the country had accepted Rs 500 and Rs 1000 notes in exchange for gold on the night of November 8. 
 
IBJA is now asking the government to take strict action against erring jewellers because they had brought a "bad, name to the entire trade, Mehta added. 
 
The figure of 15 tonnes is significant as it amounts to over a fifth of the monthly sales of gold in a normal year

People rushed to buy gold just after demonetisation announcement, gold worth Rs 5,000 crore sold on Nov 8-9

New Delhi, Mar 6 () The World Gold Council (WGC) on Friday discussed developing a comprehensive plan for the proposed international bullion exchange and instituting an ecosystem for an organised and transparent trading of bullion at IFSC in GIFT City. These issues were discussed in the meeting of the WGC's steering committee in Gujarat International Fin-Tec City (GIFT City). The meeting was attended by industry leaders covering WGC, exchanges, bullion associations, jewellers' associations, banks, and international vaulting service providers, and GIFT City officials as well. In four years, GIFT IFSC has developed a competitive environment for international financial services such as banking, insurance, capital markets and the financial technology space. "With the addition of bullion exchange, the ecosystem will be complete and will add depth to the bullion commodity market," GIFT City said in a statement. Finance Minister Nirmala Sitharaman in her Budget Speech 2020-21 proposed to set up an international bullion exchange at IFSC in GIFT City, which will lead to better price discovery of gold, create more jobs and enhance India's position in such market. The country's only International Financial Services Centre (IFSC) is in GIFT City near Ahmedabad in Gujarat. "International bullion exchange is an important element of a vibrant financial hub. For an emerging financial hub like GIFT IFSC, the time is apt to establish the bullion exchange as this will provide impetus to investments and international transactions," GIFT City MD and Group CEO Tapan Ray said. "We are happy that the implementation on this front has begun jointly by all stakeholders in the value chain. The strategy laid out by them will be an important in realising the establishment of a world class bullion trading mechanism for GIFT IFSC," he added. Somasundaram P R, managing director of WGC, said the industry steering committee, representing the entire supply chain, including global banks and exchanges, met and debated the opportunity of an organised bullion trading ecosystem in GIFT City and concluded this could be a game changer. "It was agreed to present a joint industry paper on key steps in the next few weeks for successful implementation," he added. SP HRS

WGC contemplates developing comprehensive plan for proposed international bullion exchange in India

OyoOyo CEO Ritesh Agarwal<ul class="summary-list"><li>Oyo, <a href="https://www.businessinsider.com/softbank-backed-oyo-layoffs-2020-1">the Indian budget hotel startup backed by SoftBank</a>, is laying off sales employees in the U.S., two sources directly familiar with the cuts told Business Insider. </li><li>Layoffs will impact mainly sales personnel and sales support staff at Oyo's US headquarters in Dallas and other sales hubs.</li><li>The layoffs come just weeks after the startup cut 1,800 jobs across its larger offices in India and China.</li><li>The buzzy startup was <a href="https://www.businessinsider.com/oyo-raises-15-billion-from-ceo-and-other-backers-at-10-billion-valuation-2019-10">widely considered one of the "crown jewels" in SoftBank's portfolio</a> after <a href="https://www.businessinsider.com/softbank-masayoshi-son-vision-fund-portfolio-founders-wework-zume-fair-2019-12">the implosion at coworking startup WeWork</a>. It had raised more than $3 billion in funding and was valued at $10 billion.</li><li>This is the<a href="https://www.businessinsider.com/zume-pizza-robots-layoffs-leadership-turmoil-alex-garden-softbank-2020-1"> latest of job cuts hitting SoftBank-backed startups as the investor pushes its companies to prioritize profitability over growth</a>.</li><li><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</li></ul>Oyo, <a href="https://www.businessinsider.com/softbank-backed-oyo-layoffs-2020-1">the Indian budget hotel startup backed by SoftBank</a>, is laying off a significant number of its sales and support staff in the US, two sources directly familiar with the cuts told Business Insider. The job cuts come three weeks after the Gurugram, India-based startup said it was eliminating 1,800 jobs at its much larger offices in China and India. Company leaders had described the layoffs as part of a reorganization, consolidating jobs in an effort to juice the company's revenue.It was not immediately clear how many jobs were cut and which offices were affected. Spokespeople for SoftBank and Oyo did not return Business Insider's request for comment. Oyo's layoffs come as other SoftBank-backed companies also restructure with a new focus on profitability. <a href="https://www.businessinsider.com/heres-how-many-people-have-been-laid-off-at-softbank-companies-2020-1">A Business Insider review of SoftBank's portfolio</a> found 2,600 job cuts across Oyo, Rappi, Getaround, and <a href="https://www.businessinsider.com/zume-pizza-robots-layoffs-leadership-turmoil-alex-garden-softbank-2020-1">Zume in the first week of January, </a>and more than 7,000 layoffs in the last year across 14 companies. The total number of cuts doesn't include groups of employees like WeWork's 1,000 janitorial staff who are being outsourced in the US and Canada.In a memo sent to Oyo staff on Wednesday that was seen by Business Insider, chief operating officer Abhinav Sinha cited sustainable growth as the reason for sweeping cuts. He wrote that many roles will become "redundant" under a new business plan that prioritizes profitability over growth. "We will be primarily redirecting resources from sales and sales support functions to functions that build our operational capabilities like revenue management, data science &amp; machine learning, engineering, and other areas," Sinha wrote in the memo.Sinha continued: "These decisions have been really difficult to make. But I am confident that these are the right decisions for the business today."Oyo's US layoffs occurred in two rounds, said two sources with knowledge of the layoffs. Sinha traveled to the US to deliver the news about the first set of cuts in an all-staff meeting in Dallas on January 22, and further layoffs came on January 29, said one source.The second round of layoffs will mostly affect sales personnel and sales support staff, according to the memo. The startup announced an expansion into the US market in a <a href="https://www.prnewswire.com/news-releases/oyo-hotels-the-young-hotel-startup-to-invest-300-million-in-the-us-brings-great-living-spaces-to-more-than-10-states-300871517.html">press release</a> last year, setting up a second headquarters in Dallas and offices in Chicago, Miami, New York, San Francisco, and Seattle.One source told Business Insider that the startup moved its headquarters from a WeWork location in Dallas in January. A LinkedIn search found that several sales employees in Dallas had indicated they departed the company in January, but it is not clear whether those employees were part of the larger layoffs made public Wednesday.The memo seen by Business Insider said that affected employees will receive "all possible assistance and support," but did not detail a severance package. The source familiar with the layoffs said employees were offered up to three weeks' severance pay.<h2>Questionable business practices fueled massive growth</h2>Following the implosion at coworking startup WeWork, <a href="https://www.businessinsider.com/oyo-raises-15-billion-from-ceo-and-other-backers-at-10-billion-valuation-2019-10">Oyo was considered SoftBank's saving grace among its portfolio of cash-burning</a> companies.The startup had raised more than $3 billion in funding since its founding in 2014, though its latest round included $700 million from founder and chief executive Ritesh Agarwal to buy back shares from existing investors Lightspeed Venture Partners and Sequoia Capital. The deal raised Oyo's valuation to $10 billion. <a href="https://www.businessinsider.com/softbank-masayoshi-son-vision-fund-portfolio-founders-wework-zume-fair-2019-12">SoftBank has been on the startup's capital table since 2015</a>.Oyo used some of that money for staff expansion, much of it in India, per job postings analyzed by alternative data company Thinknum. In the US, the company has had fewer than 20 job postings since July and is now down to less than 10.Globally, Oyo's job postings have dropped steeply in the last year, from August's high of 775 to 23 currently. Oyo's premise is relatively simple and based on similar short-term rental or hotel booking startups in the United States, and <a href="https://www.nytimes.com/2020/01/02/technology/oyo-softbank-india.html">has been called "SoftBank's jewel in India"</a> for being one of the country's most valuable private companies.Customers can book hotel rooms in more than 80 countries through an app by marketing local hotels as Oyo franchises. The startup then fronts the costs associated with overhauling the often-struggling hotels, including adding things like WiFi and updated interior decorations. In turn, Oyo takes a percentage of every booking. But the <a href="https://www.nytimes.com/2020/01/02/technology/oyo-softbank-india.html">New York Times reported</a> earlier this month that the startup, and Agarwal in particular, have engaged in questionable business practices to accelerate growth, a common theme among some of SoftBank's hottest investments. The investigation showed that Oyo rented thousands of rooms at unlicensed hotels and guesthouses, and let police and other officials use the service for free to avoid trouble with the authorities.Do you work at Oyo or another SoftBank-backed startup and want to share your story? Contact this reporter via encrypted messaging app Signal at +1 (331) 625-2555 using a nonwork phone, email at mhernbroth@businessinsider.com, or Twitter DM at @megan_hernbroth. <h3>NOW WATCH: <a href="https://www.businessinsider.com/hydrogen-fuel-cell-cars-teslas-biggest-threat-2019-12">Why hydrogen cars will be Tesla's biggest threat</a></h3>

Oyo, the 'jewel' in SoftBank's startup portfolio, just announced more layoffs in the U.S. weeks after cutting thousands of jobs in India and China

India’s phenomenal love for <keyword id="18712" type="ENTERTAINMENT" weightage="100" keywordseo="Gold">gold</keyword> is about to hit the peak on November 1 – the <keyword id="4067" type="UNKNOWN" weightage="100" keywordseo="Dhanteras">Dhanteras</keyword> Day – when thousands go on a gold-buying spree. But just a day before the <keyword id="1922775" type="UNKNOWN" weightage="100" keywordseo="gold-fest">gold fest</keyword>, the price of the yellow metal went down considerably. Although experts and <keyword id="92939" type="UNKNOWN" weightage="60" keywordseo="bullion-traders">bullion traders</keyword> predict that the <keyword id="35271" type="UNKNOWN" weightage="100" keywordseo="gold-price">gold price</keyword> (per 10 gm) may cross Rs 33,000 mark this Dhanteras, the precious metal continued its falling streak for the 4th straight session and tumbled to Rs 31,450/10 gm in the national capital today, a big dip from the previous close of Rs 31,710, even as premiums stayed at record highs. 
 So is it time to rush to your nearest jeweller and shop for gold on Dhanteras that marks the beginning of the five-day <keyword id="60699" type="UNKNOWN" weightage="100" keywordseo="Diwali-festivities">Diwali festivities</keyword>? Most people believe it to be an auspicious occasion to <keyword id="47916" type="UNKNOWN" weightage="80" keywordseo="invest">invest</keyword> in the precious metal. But why so, you may ask. Mythology has it that the dazzle of gold confused Yama, the god of death, when he came to claim the life of a young prince. Another legend says Dhanteras was the day when Dhanvantari (the god of healing) emerged from the ocean with amrit (nectar that makes one immortal) as gods and demons churned the sea to find it. Both legends mark the occasion as one filled with life force and positive fervour and even today, <keyword id="467706" type="UNKNOWN" weightage="80" keywordseo="goddess-Laxmi">Goddess Laxmi</keyword>, <keyword id="1922774" type="UNKNOWN" weightage="80" keywordseo="Lord-Kubera">Lord Kubera</keyword> and <keyword id="27928" type="PERSON" weightage="80" keywordseo="Lord-Ganesha">Lord Ganesha</keyword> are worshipped everywhere as people pray for wealth and prosperity. 
 
How’s gold doing: A reality check 
The worship of dhan (wealth) on Dhanteras is perfectly in tune with the gold fest that the country witnesses every year. But things could be a lot different this time around. With the yellow metal in short supply due to government’s restrictions on import, the demand for expensive gold has fallen and sales have dropped by 50%, according to industry estimates. In fact, over the past six months, <keyword id="46002" type="UNKNOWN" weightage="100" keywordseo="Gold-prices">gold prices</keyword> have witnessed a roller-coaster ride – fluctuating between Rs 26,000 and Rs 34,000/10 gm. 
 The <keyword id="44734" type="ORGANIZATION" weightage="40" keywordseo="Indian-Government">Indian government</keyword> has been taking several measures to curb inbound shipments of gold to contain the current account deficit (CAD). Only recently, it has raised the import tariff value of gold to $436/10 gm. In another unprecedented ‘gold control,’ it has also banned import of coins, bars and medallions. Consequently, banks and organised players have stopped selling <keyword id="36023" type="UNKNOWN" weightage="100" keywordseo="gold-coins">gold coins</keyword> and the demand for the same has fallen by 70%. Incidentally, coin sales always reached the peak during <keyword id="188" type="ENTERTAINMENT" weightage="100" keywordseo="Diwali">Diwali</keyword> as corporate houses and common men buy these for gifting purpose. 
 
Does that mean the traditionally ‘golden’ Dhanteras will lose its sheen this year? Not really, as people will consider buying gold if prices stay around 31K or less. Local retailers expect around 20% rise in sales during the current festive season, compared to the last fiscal. However, prices are expected to go up by Rs 300-1,000 per 10 gm on the Dhanteras Day, due to higher premiums caused by supply squeeze. Premium on gold may further rise from the current Rs 1,500-2,000 per 10 gm if demand skyrockets during this period. 
 
New <keyword id="1922778" type="UNKNOWN" weightage="100" keywordseo="buying-trends">buying trends</keyword> In spite of current restrictions, India has imported 393.68 tonnes of gold during the April-September quarter this year, as per official data. And the <keyword id="113718" type="ORGANIZATION" weightage="80" keywordseo="World-Gold-Council">World Gold Council</keyword> has estimated the country’s overall gold demand to touch a record 1,000 tonnes in 2013. We expect most of the buying to happen around Diwali and the wedding season, but there is a distinct shift in the buying pattern. Here is a quick look at what’s trending this festive season. 
 
Gold coins won’t be totally missing: Well, you can’t buy them at banks this time, but some jewellers have decided to sell gold coins this Diwali. All India Gems and Jewellery Trade Federation has asked its members to temporarily lift the ban on sale of gold coins, which has been on since July this year. Gold coins are not bought for investment but are rather seen as shagun and given as gifts, hence the decision. 
 
Lightweight jewellery is getting popular: That’s quite understandable, given the exorbitant price. While light <keyword id="6379337" type="UNKNOWN" weightage="100" keywordseo="gold-jewellery">gold jewellery</keyword> with semi-precious stones looks pretty and chic on any occasion, gold leafing and gold foil items have become the latest rage. For the 20-plus crowd, silver is in – used for funky designs, ethnic wear and even for traditional pieces. You can also buy intricate silverware for your dining collection or choose from a wide range of silver home décor items that will light up your Diwali. 
 
<keyword id="29454" type="COMPANY" weightage="80" keywordseo="Platinum">Platinum</keyword>, <keyword id="6368047" type="COMPANY" weightage="80" keywordseo="diamonds">diamonds</keyword> are the new gold: According to an <keyword id="6355988" type="CITY" weightage="40" keywordseo="Assocham">ASSOCHAM</keyword> survey, rising gold prices and short supply are driving <keyword id="624" type="ORGANIZATION" weightage="80" keywordseo="Women">women</keyword> to more stable <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> like diamonds and platinum this Diwali. On a year-on-year basis, the demand for diamond jewellery has grown more than 25% this year while diamond-studded platinum jewellery has seen more demand in the metros, than the traditional diamond-and-gold jewellery. That’s why 76% jewellers are now focusing more on platinum and diamond jewellery. If you, too, want to follow the latest trend and skip the yellow metal for a change, this Dhanteras-Diwali may bring a different kind of shine in your life. 
 
With input from Agencies 
Image: Economictimes.indiatimes.com

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