BUY & TRADE
PRECIOUS METALS
Opportunity:
- In 2024, world exports of Gem and Jewelry sector are projected to be $923 bn
- India is ranked at #6 in the world with roughly 4.3% of share in World exports.
- Furthermore, India’s share is approx. 8% of Worldwide Gold Jewelry exports (ranked 4th)
- Our vision is to make India a Bullion Trading Hub by primarily focusing on shipping small or large quantities of Gold & other precious metals.
Jewelers around the world including India struggle to purchase smaller quantities of gold efficiently in today's market. Traditionally, suppliers and distributors often impose minimum order quantities (MOQs) that are too large for smaller businesses to meet. For instance, the requirement to purchase gold in quantities of 5-10 kilograms can pose a significant challenge for jewelers with limited capital. This pain point not only inhibits their ability to manage inventory effectively but also restricts their flexibility in responding to fluctuating market demands.
Silver and Gold have been valued for their stability throughout history, serving as tangible assets that are easily tradable. While paper currency was once backed by precious metals until 1971, this link was severed as governments and central banks manipulated currency values to stimulate their economies or provide liquidity during crises. This devaluation often leads to long-term inflation, affecting investor wealth. Notably, only four precious metals have been assigned ISO 4217 currency codes – Silver (XAG), Gold (XAU), Platinum (XPT), and Palladium (XPD) – highlighting their quasi-currency status.
Precious metals serve as exceptional hedges against inflation due to their intrinsic value, lack of credit risk, and immunity to inflationary pressures. Unlike paper currency, their supply cannot be artificially increased, safeguarding their worth. Additionally, they offer genuine protection against geopolitical and economic uncertainties, particularly in developing countries where they act as a shield against currency depreciation.
For investors, precious metals offer genuine diversification. Unlike most financial assets that tend to move in tandem, they historically exhibit negative correlation with financial assets, thus providing effective diversification. While they carry inherent risks and may face temporary imbalances, these can be mitigated by steadily accumulating them as a defined portion of one's portfolio. With MRE, pooled ownership and the option to purchase small quantities enable investors to tailor their exposure precisely.
Although Gold has traditionally been favoured by foreign investors, Silver, Platinum, and other metals possess significant economic applications and intrinsic value, presenting opportunities for robust returns, especially during economic turmoil.
Traditionally, investors held precious metals in physical form, which posed storage and security challenges. However, MRE addresses these concerns by vaulting precious metals on a pooled basis, adhering to best practices for each metal.