In a strategic move to bolster consumer confidence and address trust issues within the gold industry, India has launched a new self-regulatory organization, the Indian Association for Gold Excellence and Standards (IAGES), with support from the World Gold Council (WGC). This initiative aims to promote fair, transparent, and sustainable practices within the bullion industry, ensuring that all stakeholders adhere to high standards of regulatory compliance and ethical conduct.

Objectives and Structure of IAGES

According to Mr. Sachin Jain, CEO of WGC’s Indian operations, the primary goal of IAGES is to address the trust deficit that has plagued India's gold industry, largely due to poor practices by a small segment of businesses. To combat this, IAGES will implement a rigorous accreditation process, wherein members will undergo comprehensive audits to ensure adherence to a strict code of conduct. Successful members will be permitted to display the IAGES logo, signifying their commitment to excellence and integrity.

The organization will work closely with key industry bodies, including the Indian Bullion and Jewellers Association (IBJA), the All India Gems and Jewellery Council (GJC), and the Gem and Jewellery Export Promotion Council (GJEPC). These associations will play a crucial role in the operational framework and governance of IAGES.

Role of the World Gold Council

The WGC will be instrumental in popularizing IAGES among retail consumers and will finance an extensive campaign to raise awareness about the new accreditation body. This initiative is expected to enhance transparency and restore consumer trust in the gold market, addressing concerns that have impacted the industry's reputation.

Market Impact and Future Outlook

Despite a 5% decline in gold demand during the June quarter, the outlook for the latter half of 2024 is positive. Consumption is anticipated to improve, driven by a recent correction in local gold prices and a significant reduction in import taxes. The establishment of IAGES is expected to further bolster consumer confidence, potentially contributing to a rebound in demand.

Conclusion

The launch of IAGES represents a significant step forward in the Indian gold industry’s efforts to restore trust and promote best practices. By focusing on transparency, rigorous standards, and consumer confidence, IAGES aims to enhance the overall integrity of the gold market in India, paving the way for a more reliable and trustworthy industry landscape.

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