Dore bar refining likely to exhilarate the futuristic Indian gold industry

Gold  |  2013-05-23 06:58:55   |   By

Indian bullion merchants are seen increasingly shifting to imports of gold dore bars having less than 95% gold content

MUMBAI (Scrap Monster) : Indian bullion merchants are seen increasingly shifting to imports of gold dore bars having less than 95% gold content. This follows the recent Reserve Bank of India (RBI) directive ordering its member banks to refrain from importing gold on ‘consignment’ basis for anyone other than jewellery exporters. According to industry experts, refining of dore may turn out to be the next big business in the country.

The imports of gold dore bars spiked up once the RBI came out with its regulations on gold imports. The net imports of dore during the month of April touched 16 tonnes. Much of the dores are reported to be sourced from Russian and African mines.

Dore bars are a semi-pure alloy of gold. The bars generally contain 5 to 8% copper and silver. They being semi-purified are entailed to refining procedures before they can be used in making ornaments. High profile gold exporters and renowned retailers having outlets spread across the country are expected to establish their own refineries.

According to Bombay Bullion Association (BBA), exporters and big bullion dealers have already started setting up own refineries. The capacity utilization of Indian refineries have shot up from 10% to 25% . According to BBA, the refining business is just at its initial stages and would generate immense business opportunities in the days to come.