The chairman of the Armenia Union of goldsmiths and jewelers, Director General of “Yerevan Jewelry Plant” Emil Grigoryan, in the interview with Armenian News-NEWS.am said that gold loans would help jewelry producers to attract gold for cheaper price. According to him, gold is a reliable asset that attracts relatively low interest rates.

“Regular loans to buy gold now cost around 10 - 15%. And in the form of gold loans the amount will be available at 3%,” Grigoryan said.

According to him, this mechanism in Armenia needs serious development.

“The benefit for the financial sector is that such an asset, like gold, will work for it,” he said.

Note that one of the major markets in gold loaning is India, where, according to the World Gold Council (WGC), about $ 18.5 billion in household savings (about 7%) is stored in gold. Pure gold in large quantities is not produced in Armenia, and jewelry producers purchase bank gold abroad for work.