PM Modi launched gold schemes: Jewellers welcome them

Mumbai, Nov 6:Jewellers today welcomed the three major schemes on gold launched by Prime Minister Narendra Modi and said this will give a boost to the industry.

"The Ashok Chakra-Mahatma Gandhi gold coin issued in 5gms, 10gms, 20gms denominations is a great idea of putting India on the international map of coin collectors," All India Gems and Jewellery Trade Federation Director Ashok Minawala said here

However, bringing the Indian Gold Coin under Indian Gold monetisation program will encourage people to buy coins in place of jewellery and will discourage value addition.

This will reduce jobs to goldsmiths as the coins will be manufactured in one factory and with machines, he said.

"The bigger issue is that while on one hand we were complaining of CAD affecting gold imports we are here going to increase gold imports in a way as we are promoting the sales of gold bars and coins which was frowned upon," he added.

The Sovereign Gold Bonds is comparatively a good tool for the educated and capital market friendly to invest in gold.

"This will be issued on payment of rupees and denominated in grams of gold. The minimum investment in the bond shall be 2 grams.

The bonds can be bought by Indian residents or entities and is capped at 500 grams," he said. He said the Gold Monetisation Scheme is a wonderful concept of monetising domestic idle gold and brings it to the use of the industry to help reduce imports.

The dynamics of scheme's design and interest paid to depositors will play a major role in the success of the scheme, he said. The Prime Minister yesterday launched Gold Monetisation Scheme (GMS), Indian Gold Coin and Sovereign Gold Bond.

PTI