EGRs & Their Impact  on The Indian Gold Market

Understanding EGRs

EGRs are receipts for your gold deposits in SEBI-registered vaults, similar to a bank balance that shows the money the bank holds on your behalf.

EGR Denominations

The vault manager will hold the gold physically on your behalf, and each EGR will denominate 10g of gold.

EGRs Makes Selling Gold Easy

You can check the price and purity of the EGR in real time & sell when the price seems right.

Security of Your Gold

The vault manager has to maintain extensive security standards & take insurance to ensure the safety of your gold.

Security of Gold

In case of any discrepancy, the vault manager is responsible  for replenishing the gold of the same quality and quantity.

Quality of Gold

The vault manager verifies the purity of the gold before creating the EGR. This purity standard would avoid any quality issues when selling.

Redeeming Physical Gold

EGRs should be ‘fungible’, enabling EGR holders to convert EGRs issued by one vault manager at another vault manager’s facility.

Trading Physical Gold Through EGRs

Gold ETFs are popular but not a tool for trading physical gold on exchange. EGRs are the first such product in India.

India Doesn’t Have Gold Price Discovery

Despite being one of the biggest importers of gold, there is no price discovery because gold prices are not uniform in India.

Effects of EGR Introduction

With EGRs, there would be costs that vault managers would charge investors. 

Can India be a Price Maker After EGRs?

With the correct execution, EGRs can transform the Indian gold market.