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

The Economic Times - - Finance & Commodities - Su­tanuka.Ghosal @times­group.com

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.

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