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Loans against gold may support small businesses post Covid reopening

Gold is typically the only asset small entrepreneurs have in order to raise funds. Large quantities of the metal may also come in to be sold

The data suggests that the 10-year rolling return has been on a downward course for nearly seven years after touching a record high of 20.3 per cent in July 2013
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Gold demand is expected to bounce back in India by Diwali

Dilip Kumar Jha Mumbai
Small units are now looking to mortgage their family-owned gold jewellery to get out of the slump caused by the Covid-19 pandemic.

“For small units, gold jewellery is the only option to get funds. Hence, we see a sharp increase in loans against gold to fund small businesses once markets open,” said Somasundaram P R, managing director-India, World Gold Council, while speaking at a webinar organised by the PHD Chamber of Commerce on Thursday.

Small businesses like fruit and vegetable vendors, roadside eateries, or even teastall owners avail of private funding. But, given the job losses and economic distress among the middle

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First Published: Jul 22 2020 | 8:26 PM IST

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