Gold monetisation scheme, To Diwali’s eve, the government may start important gold -connected systems, on Sunday, Prime Minister Narendra Modi reported including the monetisation.
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Besides this scheme, the government will also launch “Sovereign Gold Bonds” and gold coins with Ashok Chakra, he said in his monthly radio programme “Mann Ki Baat”. When the bond paper will be returned, the depositor will get money as per the value of gold at that time. May silver not transform from dead-money to live energy?
Modi further added that since he would be targeting to push the bonds, which are focused at lessening the precious metal demand in physical form and with this bonds scheme he would be targeting to shift investors to a financial instrument. “You support me”, Mr Modi said. “Don’t keep gold at home”, he added.
Remembering Sardar Vallabhbhai Patel ahead of his birth anniversary on October 31, the prime minister said the leader had made great efforts for India’s unity.
Modi explained that people will not get any gold bar by investing in this bond but receive a piece of paper which will have the same value as that of gold.
“Please, don’t let your gold be dead money”, Reuters quotes Modi as saying. We’re likely to begin this he said. Besides, India will also introduce its own gold bullion.
He said, that the scheme will be launched in the run up to Dhanteras, the gold and silver buying festival. “That’s why in the coming week, before Dhanteras, it will made be available to citizens”, he said. Along with this, 20 gm cold coin will also be available.
“Security printing and Minting Corporation of India Ltd will be minting these coins”.
The coins will weigh 5 gm and 10 gm and the bullion bar will weigh 20gm.
The government is launching these schemes with a view to mobilise a part of 20,000 tonnes of idle gold lying with households and temples.
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While pricing of these coins are not known but they may be sold at a premium to the wholesale gold price prevailing in the market. Details of the scheme including interest rate payable, how to determine gold price etc are still being worked out.
