What is a Bullion Exchange? UPSC Daily Important Topic | 1 August 2022

What is a Bullion Exchange?

Bullion

✓Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.

✓Bullion can sometimes be considered legal tender and is often held as reserves by central banks or held by institutional investors.

✓The Government had notified in August 2020 about the Bullion Spot Delivery Contract and Bullion Depository Receipt (BDR) with underlying Bullion as Financial Product and related services as Financial Services.

Bullion Exchange:

✓A bullion Exchange is a market through which buyers and sellers trade gold and silver as well as associated derivatives.

✓There are various bullion markets around the world with the London Bullion Market known as the primary global market trading platform for gold and silver.