New schemes launched to reduce demand for physical gold

INVESgoldPrime Minister Narendra Modi has launched 3 schemes designed to dampen the physical demand for gold and tap into some 20,000 tonnes of the metal lying idle in Indian households and institutions.

The Gold Monetisation Scheme (GMS) 2015 will offer NRIs the possibility to deposit their gold and earn interest of up to 2.5%, while under the Sovereign Gold Bond scheme, investors will earn 2.75% interest per annum.

PM Modi also launched the first gold coin minted in India, bearing the Ashok Chakra on one side and Mahatma Gandhi on the other. The coins will be available in 5 and 10 grams and a 20 gram gold bar will also be available through 125 MMTC outlets.

Speaking on the occasion of the launch Modi said ‘People should take advantage of this golden opportunity to help India march to a golden period’ He said there is no reason for a country with so much gold lying idle to remain poor, and with the right policies India can get rid of the tag of ‘poor nation’.

In the first tranche gold bonds will be issued on November 26 and the scheme will offer investors a choice to buy bonds worth from 2 gm of gold to 500 gm. Subsequent tranches will be notified later.