It was on Thursday when the Prime Minister of India, Narendra Modi, came forward to announce the recent launch of three new gold coin schemes. With Diwali celebrations around the corner, the idea is surely going to help the Indian government with steady sales and profit.
Putting 20,000 tonnes of idle gold to use, the Indian Government has finally decided to launch the gold-related schemes for three different types of coins. Along with the Union Minister for Finance Arun Jaitley and Minister of State for Commerce & Industry Nirmala Sitharaman, PM Modi revealed the first look of three gold coins.
Out of the three coins, one coin is engraved with the image of national emblem Ashok Chakra on one side and Mahatma Gandhi on the second side. The second coin is clearly for the gold monetization scheme that could be later converted to gold jewellery. Last but not the least, the third set of coin denotes to the yellow metal assets that people invest for the purpose of interest-bearing deposits. The later scheme further entertains a sovereign bond of eight year tenure that the person can exit only after first five years.
Utilizing the right resource at the right point of time:
As per the World Gold Council, they have about 22,000-23,000 tonnes of gold in their depository. It means tonnes of Gold were lying idle with households (and rather in the most respected institutions in India). Since India is on the seasonal spree of celebrations, it is probably the best time to launch something as exciting as the discussed gold scheme. India’s annual imports amount is around 850 to 1,000 tonnes that is valued somewhere near $35 to $45 billion.
It seems that PM Modi has a gripping understanding of Indian ‘buying behavior’ and rational beliefs. Quite evidently, he has released the right strategy in the right point of time.