New Delhi, September 4 (Kiran News): The World Gold Council, in partnership with global law firm Linklaters and consultancy Hilltop Walk Consulting, has introduced a new framework aimed at modernising the global gold market.
The proposal features a structure called Pooled Gold Interests (PGIs), which will allow investors to hold fractional shares of physical gold stored in secure vaults. This initiative is designed to make gold trading simpler, more flexible, and more accessible to a wider range of investors.
According to the council, PGIs will enable easier and safer transfer of gold ownership between parties and also facilitate the use of gold as collateral in financial markets.
Currently, gold trading largely takes place in two formats: allocated gold, where investors directly own specific bars but face operational complexities, and unallocated gold, which offers higher liquidity and lower costs but carries the credit risk of the holding institution. The new PGI system aims to strike a balance between the two by providing both security and ease of trade.
The announcement follows extensive industry consultations and aligns with recommendations from recent reviews conducted by the Financial Markets Standards Board (FMSB).
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