In this note, we’ll do a simplified analysis of the Gold Finance Industry with a special focus on the two key Competitors of IIFL finance who might benefit from the vacuum its absence will create.
Gold Loan as you mentioned is usually considered not a problem with NPA but I believe the biggest risk is the Gold price. Presently Gold price is at historic high and if industry sees correction in Gold price - What would be the situation ? Do you have some data from the past about what happened to Gold loan when the Gold price decreased ?
Thanks for the nice post - just wondering what is your view on the Gold loan correction post the boom AUM with price.
Thank you Sir. Didn't get the question please can you repeat it. You're asking view on Gold loan industry post-boom?
Gold Loan as you mentioned is usually considered not a problem with NPA but I believe the biggest risk is the Gold price. Presently Gold price is at historic high and if industry sees correction in Gold price - What would be the situation ? Do you have some data from the past about what happened to Gold loan when the Gold price decreased ?
Great Question. Got it sir will share in due time :)
Would also love to hear your opinion on Globus spirits and Goldiam whenever you get the chance have sent a private message explaining my thesis
Sure, thank you Mahin. Will look into it
Great thank you for the analysis