Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
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78<br />
BULLION DEALERS<br />
Imported TT bars are distributed nationwide through secondary and lower tier bullion dealers that fall<br />
below the primary tier of bank and PSU importers.<br />
Bank importers indicate that there are less than 50 significant secondary tier dealers around the country. Some deal<br />
with only one bank, others with several banks.<br />
Some, acting on behalf of large tertiary tier dealers, can order 1,000 TT bars or more at a time.<br />
The banks combined are reported to deal directly with more than 200 secondary tier dealers.<br />
SECONDARY TIER DEALERS<br />
The most active dealers tend to be located in or near, or have strong links with, cities where the State sales<br />
tax is low, notably the following:<br />
State City<br />
Maharashtra Mumbai<br />
Rajasthan Jaipur<br />
Haryana Gurgaon *<br />
Gujarat Ahmedabad<br />
* Adjacent to New Delhi<br />
When dealing with banks and PSU’s, the minimum wholesale order quantity ranges between 50 – 200 TT bars.<br />
Although secondary tier dealers tend to deal only with tertiary tier dealers, some also sell TT bars directly to large jewellery<br />
retailers for fabrication purposes.<br />
While some focus solely on selling TT bars, many are involved in other precious metal-related businesses.<br />
The way secondary tier dealers purchase TT bars is covered in the sections on “Banks” and “Public Sector Undertakings” and<br />
in the chapter on “Pricing and Profitability”.<br />
OTHER DEALERS<br />
The number of tertiary and lower tier dealers involved in the distribution of TT bars runs to thousands<br />
nationwide.<br />
The bullion dealing network is complex because most trade entities act as dealers to varying extents.<br />
For example, all jewellery retailers are “bullion dealers” in that they sell and buy back coins and small bars (and buy back<br />
old gold jewellery) at prices related to the prevailing gold price. Most would sell TT bars, if requested, to retail customers.<br />
Some also act as secondary and lower tier dealers.<br />
DELIVERY<br />
Some secondary and lower tier dealers in cities will deliver TT bars (or arrange delivery) to other dealers or jewellery<br />
retailers in smaller cities, towns and even some villages.<br />
Deliveries are often hand-carried informally by couriers known as “angadias”, travelling by air, train or car.<br />
TRUST<br />
The distribution of TT bars throughout India relies on trust.<br />
The reputation of the dealer is more important than the TT bar brand offered. The distribution chain will normally accept<br />
any well-known brand from a trusted dealer.<br />
AN INTRODUCTION TO THE INDIAN GOLD MARKET