Apart from the delivery angle, there is another issue. Individuals taking physical delivery of gold may mostly buy it for consumption. “Even if individuals take delivery of the gold, they would still need to go to a jeweller to convert it into jewellery, bringing back the same trust issue around purity and quality. This is also why branded jewellery companies continue to gain market share, as consumers trust them for buybacks, exchanges and purity assurance,” said Abhishek Kumar, a Sebi-registered investment advisor and founder of SahajMoney.
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