INTERVIEW Sachin Jain, CEO- WGC

Sachin Jain joined the World Gold Council (WGC)  in March 2024. Based in Mumbai, Sachin is responsible for leading the World Gold Council’s activities across the Indian gold market.

Sachin brings with him a deep understanding of the Indian consumer and jewellery market, from strategic thinking to practical execution. He has over two decades of rich experience and understanding of the Indian consumer. Sachin had joined WGC from De Beers where he has held several senior roles for the past 13 years.

As Managing Director of DeBeers India, he has led the De Beers Forevermark business in India and the Middle East. Previously, Sachin has held senior positions for De Beers, Lladro, Swatch Group and Benetton.

World Gold Council is an organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. The WGC’s team of experts build an understanding of the use case and possibilities of gold through research, analysis, commentary and insights, and drive industry progress, shaping policy and setting the principles for a perpetual and sustainable gold market.

Here, in an Exclusive Interview with Precious World, Sachin Jain, CEO- of WGC, talks about the Gold sector, especially the existing situation in the Artisanal mining sector, as well as IAGES and Digital gold schemes prevalent currently, with considerable clarity…

Some excerpts,

Let’s go straight to the latest news on Gold, post-Budget 2025 one notices a huge fall in Gold prices. How do you think this trend will play out in the coming months, in terms of demand? Your views?

The fact is globally we have seen gold prices reaching the 4th historic high already this year at US $2,840/oz and in Indian markets, we have seen prices reaching Rs 84,500/- for 10 grams. We have seen robust demand in 2024 despite higher gold prices. Our demand outlook for India is 700-800 tonnes and higher growth towards gold as investment in the form of ETFs, digital gold and coins or bars. Jewellery will also pick up when price volatility lowers. Overall, the Indian gold market is poised for growth, considering that demand is likely to be influenced by the higher spending power in the hands of individuals and the fluid geo-political situation in various parts of the world.

What would be the major drivers of gold demand in 2025? Any headwinds you perceive in gold prices in 2025-26, with the political situation in the US changing by the day? Trump has announced a 25% tariff on imports from Canada and Mexico and a 10% levy on Chinese goods. Your thoughts?

In 2025, major drivers of gold demand will include increased disposable incomes, strategic diversification by corporations and banks, and sustained interest from retail investors. The Indian government’s initiatives of reducing income taxes and increasing ease of doing business will help further boost the gold sector. However, geo-political developments will act as a major driver for gold prices. Add to this the trade policies emanating from the USA could lead to some instability and affect global trade, thereby affecting gold prices. Despite these challenges, gold’s role as a strategic asset for diversification and liquidity, along with strong demand from central banks and Asian markets, will continue to support its value.

Artisanal mining has been in a deplorable situation to date. How can the artisanal operators’ gold be brought into the ecosystem to be included as part of responsible sourcing? What steps have been taken by WGC in this matter?

The World Gold Council (WGC) last year had announced four central banks’ commitment to signing ‘The London Principles.’ This is a set of operating principles to help structure and formalise Central Bank Artisanal and Small-Scale Gold Mining Domestic Purchase Programmes (ASGM DPP). The inaugural signatories are Banco de la República (Colombia), Banco Central del Ecuador, Bank of Mongolia, and Bangko Sentral ng Pilipinas. The commitment of these institutions represents progress towards more responsible gold sourcing practices worldwide.  Artisanal and small-scale gold mining (ASGM) is an important source of livelihood in many gold-producing countries. Some estimates suggest that approximately 15 million people make their living from ASGM. However, it is often unfortunately associated with illicit activities, lack of environmental protection, labour abuses, and other harmful practices. ASGM DPPs offer a route to help bring responsible artisanal and small-scale gold miners into the formal supply chain.  Around the world, some central banks have launched these programmes to buy gold produced by domestic artisanal and small-scale gold miners in local currency. The schemes are mutually beneficial as small-scale miners can sell their production to a trustworthy source that offers transparent buying processes and pricing. In addition, central banks can add gold to their official reserves using their local currency, allowing them to grow their reserve assets without having to sacrifice other hard currency reserves. Over the last two years we have worked with central banks who operate ASGM DPPs to exchange best practices and learn from experts. We are pleased to see the group evolve into ‘The signatories of The London Principles’, a trusted circle of central banks who adhere to the most stringent requirements for ASGM DPPs. The participants in this initiative believe that well-structured ASGM DPPs have the potential to contribute to sustainable development, support formalisation and raise ESG standards.

As an investment vehicle, Gold has always stood as the No.1 investment vehicle in India. How is the situation now, especially with other financial products becoming more attractive?

Total gold investment demonstrated strong growth of 29% in 2024 at 239.4 tonnes – the highest since 2013, compared to 185.2 tonnes in 2023, reinforcing gold’s status as a safe-haven asset. Similar to other markets, investment demand was supported by the rise in gold prices throughout the year. Prices resumed their upward trend after the July duty cut, and a subsequent correction in November attracted investors seeking lower-priced purchases. There was consistent demand for ETFs throughout the year, and the festival period of Dhanteras and Diwali in October/November stimulated buying in the final quarter. This was further enhanced in major metropolitan cities by e-commerce platforms offering rapid delivery of small gold investment bars and coins.

Is the Self-Regulation initiated by WGC in 2022 holding up till now? Also, how successful has the digital gold project been? Analysts wonder if digital gold has demand at all because Indians have hoarded physical gold for ages. What is the current situation with the project? OR do you plan to bring on another project soon?

IAGES (Indian Association for Gold Excellence and Standards) – the industry’s first-ever self-regulatory organisation created by the industry and for the gold industry, supported by the World Gold Council was announced in August 2024. IAGES is aimed at increasing consumer confidence and enhancing trust in the Indian gold industry by encouraging the adoption of fair, transparent and sustainable practices, regulatory compliance, establishing a code of conduct and introducing an audit framework – across the entire industry value chain. The IAGES will be fully operationalised later this year.

Digital gold has become quite popular with Indian consumers because of the ease of undertaking transactions, absence of minimum ticket size, the provenance of the gold purchased, flexibility in selling the gold instantaneously or the ability to get physical gold delivered to the customer’s doorstep when needed, etc. It has given the most reliable access to over 80 million small and micro investors in India (especially from rural and semi-urban areas) to invest in gold, one of the best-known commodities to hedge against inflation, thereby adding to their financial stability. There are many digital platforms through which Digital gold is available today.