Time for MMTC Sovereign Gold Coins to Shine
Post-demonetisation rush, the state-run agency is looking forward to rise in their gold coin business through banks
Kolkata: Higher gold prices and improved cash supply in the banking system are likely to increase the sale of MMTC sovereign gold coins, a company executive said. “We had good Diwali sales of our coins. But post-demonetisation, there has been some impact though we are yet to come out with the numbers. Banks were busy handling only deposits of old 500 and 1,000 notes and in withdrawal of cash. But that situation has normalised now,” said a senior executive of MMTC who handles the sovereign gold coin business. MMTC depends on bank branches to sell gold coins. The state- run agency, which already has tie-ups with seven banks –– ICICI Bank, HDFC Bank, Indian Overseas Bank, Vijaya Bank, Federal Bank, Yes Bank and Andhra Bank –– has also initiated talks with Corporation Bank and SBI for distributing sovereign gold coins which carry the Ashoka Chakra on one side and Mahatma Gandhi’s face on the other. It is available in denominations of 5 gm,10 gm and 20 gm. “Rising gold prices create a lot of interest among investors. They prefer to buy coins and bars when they sense that gold will move further northward,” the MMTC executive added. Gold prices rallied in the past two weeks since January 20 after Donald Trump took oath as US president. Comex gold prices have gained from $1,200 from January 20 to around $1,242 per ounce mark –– a gain of 3.5%. On MCX, gold prices have rallied from .₹ 28,700 to around .₹ 29,400 per 10 gm.
Gold may head towards .₹ 29,900, from where there may be some downside correction towards .₹ 28,000 mark again, said Prathamesh Mallya, chief analyst, nonagri commodities and currencies, Angel Broking.