Anglogold apprises RBI of paper gold products

In this regard, Anglogold executive director (marketing) Kelvin H. Williams, along with top representatives of WGC, recently met RBI officials, including deputy governor Rakesh Mohan and apprised them of the importance of paper gold, a gold-backed product similar to listed stocks and securities, which is seen to help further improve gold demand from a cross-section of investors, including institutional investors.

Williams said: “The RBI, open minded as it is, is interested intellectually and professionally on the matter. From our talks with them, what I understand is that they do not seem to consider this new instrument as frightening and therefore, RBI may not have any objection in allowing Indian banks to offer such products.” Further, Williams said Indian banks have done remarkably well compared to their counterparts in China and Japan. Hence, the apex bank would not have any objection to banks offering paper gold products.”