Though India is the leading player in import and trade in bullion and export of jewellery, it does not exert any significant impact in discovery of gold prices in the international market. The reason is that country’s bullion trade is fragmented and unorganized.
	During recent times, Bullion market has witnessed high degree of volatility in prices, mostly due to fluctuation in international market and factors influencing dollar valuation. This has severely affected the bullion and jewellery trade in India, as demand for ornaments as well as bullion usually comes down if the prices are volatile.
	Export of Indian gold bar is not allowed. This creates a disparity in Indian gold price and international prices, if the international price goes above a certain level. It creates a distortion in physical trade, which in turn severely affects import of gold in India.
	Most of other commodities and merchandise are under OGL, where both import and export of commodity is allowed without any hassle. But, in case of gold and silver, there are a number of restrictions on import as well as export of gold.
	Price of gold and silver differ from place to place in India even at the same moment. There is no benchmark price available, which is valid for the entire country.
	There is no national level trade and industry body, which can represent the bullion trade and industry.
	India has huge household stock of gold and silver. In past, there have been multiple attempts by the Government to bring out such assets into mainstream, but none of the schemes could achieve the desired results. There is need to create a market linkage for such household bullion stock, which can be refined / certified by approved refineries so as to ensure purity and weight. This would induce the people to bring out such gold into open whenever International gold prices rise beyond a level in order to take advantage of rising prices.