Western investors are significantly contributing to the recent surge in global gold prices, with a notable impact in India, according to Sakhila Mirza, Deputy CEO of the London Bullion Market Association (LBMA).
Mirza highlighted that gold is increasingly captivating Western markets, alongside its traditional appeal in Asia. “Gold has always been a key interest in the regional markets, particularly in India. However, on a global scale, it’s receiving heightened attention and focus, especially from the West,” she told CNBC India. “This shift in interest, expanding beyond Asia to Western markets, is playing a crucial role in supporting gold prices.”
Mirza emphasized that Western investors are now viewing gold not just as a short-term opportunity but as a long-term investment, providing stability. “The allure of gold lies in its potential for long-term stability, which is attracting substantial interest from Western investors,” she added.
Regarding the Indian market, Mirza commented on the positive effects of recent reductions in gold import duties. “India is the world’s second-largest gold consumer, a crucial market not only for jewelry but also due to cultural and emotional factors associated with gold,” she noted. “The duty cuts have injected significant positivity into the market, and this is reflected in the current high demand for gold.”
Mirza observed a strong focus on enhancing the Indian gold industry, noting that the current positive sentiment and engagement present a prime opportunity for growth. “There’s a strong momentum towards improving industry practices, building businesses, and attracting new participants,” she said.
Looking ahead, Mirza outlined the LBMA’s key priorities in India for the upcoming year. “A major focus will be on leveraging technology to enhance the industry. We are exploring the use of AI and blockchain to improve efficiency. The LBMA is working on the Gold Bar Integrity project with the World Gold Council, and next year we will launch an LBMA database to improve transparency and trust in the market,” she explained.
Mirza stressed that technology alone is insufficient without robust standards. “The technology needs to be supported by appropriate standards to be effective. The LBMA has always prioritized continuous improvement of standards, and the growing interest in responsible sourcing is a positive development,” she concluded.
