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SGL Presents Retail Jeweller India Forum 2019: Know Everything About Gold Loans & How to hedge at MCX



Learn about the latest innovative financial products from MCX and the different ways of de-risking your business in this unpredictable price-fluctuating environment at Retail Jeweller India Forum. In this era of gold loans, banks enable jewellers to have significant savings, which they pass it on as benefits to the consumers. The concept of gold loans is unique to the jewellery sector, and therefore, the industry should take advantage of it.  Would you like to know more about this and also how to hedge at MCX, then don’t forget to attend Retail Jeweller India Forum on February 9.

This educative session ‘Gold metal loans from banks and how to hedge at MCX’, is moderated by Sanjeev Agarwal, Chairman FICCI Gems & Jeweller & Lifestyle Committee. The members of the esteemed panel are- Shivanshu Mehta, MCX and Ashish Pethe from Waman Hari Pethe.

Speaking about the topic and its relevance today, Sanjeev Agarwal, Chairman FICCI Gems & Jeweller & Lifestyle Committee said, “Unlike many other retail sectors, Jeweller Retailers operate on very slim margins because over 79-80 percent of the retail price is accounted for by the raw material (gold) cost itself. Hence any savings in raw material (gold) costs through gold metal loan and gold price hedging, can make a signing difference to the bottom line.”

He further added, “Gold metal loan concept is unique to the jeweller sector only and not available to any other retail product category and hence the trade should take full advantage of it and cut their inventory carrying costs by 1/4th, which will help them increase their retail presence with limited investments.”

Ashish Pethe, Partner, Waman Hari Pethe shared, “With the fluctuations in gold price being the norm. It has become imperative for the full value chain in the gold jewellery industry to be aware and use the hedging mechanisms. The pressure on the working capital requirements can be eased through gold metal loans.”

Shivanshu Mehta, Head-Bullion, MCX will talk about how MCX gold and silver prices have become a domestic benchmark price across the bullion value chain. He will also speak about how jewellers are exposed to price volatility due to several reasons, and how MCX Bullion contracts capture all these factors in gold and silver prices thereby, enabling a complete hedge.

Some of the other major points, which Mehta plans to touch upon are-jewellers are using MCX gold put options to offer their customers the benefit of flexible pricing i.e. benefit of getting the lower of the prices of either the walk-in day or the date of a festive occasion. The exchange has increased the delivery locations to eight across India, whereby jewellers can use the exchange platform for hedging as well as delivery of LBMA quality Gold and other relevant points. So hurry and book your seats today.

(Retail Jeweller India will be hosting their 6th edition of Retail Jeweller India Forum on February 9, 2019, at Sofitel BKC, Mumbai.  Register yourself today to be part of the exciting knowledge-based event, which will have renowned speakers sharing their rich insights on this year’s theme ‘Innovate to Win’. For more information and to register, log in on to retailjewellerindiaforum.com).

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