A session titled Understanding the Gold Ecosystem, held at NESCO, brought together industry experts to unpack the realities shaping India’s gold value chain. The discussion featured Maulik Shah, Co-Founder and CEO, Almus Risk Consulting LLP; Prescilla D’Souza, EFO, Jewellex India Pvt. Ltd.; and Nirakar Chand, CEO, DIL, who examined how supply structures, policy shifts and price volatility are reshaping business decisions across the sector.
Setting the context, Maulik Shah stressed that tracking gold prices alone is no longer sufficient. With sharp price rises and sustained volatility, businesses must understand supply dynamics, demand behaviour and structured risk management to protect margins. While value growth has remained strong, higher prices have led to volume compression, increasing balance sheet exposure and inventory risk. He underlined that disciplined SOPs, hedging strategies and clear risk frameworks are now central to financial stability.
Tracing the evolution of India’s gold policy, Nirakar Chand outlined the shift from the restrictive Gold Control Act era to a more liberal, market-linked supply framework. He explained how nominated agencies, refiners and importer-exporters have expanded sourcing options beyond banks, improving access and flexibility, particularly for small and mid-sized exporters. Chand also highlighted efforts to address denomination challenges by aggregating demand and breaking bulk supplies, even as working capital and inventory cycles remain key pressure points.
From an exporter’s perspective, Prescilla D’Souza spoke about the direct impact of volatility on profitability. With gold now forming a larger share of jewellery value, Jewellex has adopted systematic hedging through MCX, especially for export orders that are price-locked upfront. She noted that while structured hedging has reduced risk, constraints such as fixed bank premiums and evolving platforms like IIBX still need refinement. The session concluded with a shared view that stronger market infrastructure, liquidity and cost efficiency will be critical as volatility becomes a permanent feature of the gold ecosystem.