Gold De­posit Schemes What do they have in re­serve for con­sumers?

Consumer Voice - - Bfsi Guide / Gold Deposit Schemes -

"In­dia has no rea­son to be de­scribed as a poor coun­try, as it has 20,000 tonnes of gold. The gold avail­able with the coun­try should be put to pro­duc­tive use. These schemes show us the way for­ward in achiev­ing this goal."

– Prime Min­is­ter Naren­dra Modi

"No one scheme or sin­gle way of buy­ing gold is a to­tal re­place­ment of the other. To­gether, these op­tions ex­pand con­sumer choices. The healthy com­pe­ti­tion among forms of gold and the chan­nels through which gold will be avail­able to an av­er­age con­sumer will ben­e­fit the eco-sys­tem by rais­ing stan­dards, im­prov­ing trans­parency and as a re­sult gen­er­at­ing trust in an in­dus­try that has huge em­ploy­ment and ex­port po­ten­tial."

– World Gold Coun­cil Man­ag­ing Di­rec­tor So­ma­sun­daram PR

Gold-re­lated in­vest­ment or de­posit schemes have been in the spot­light for over a year now. Many ex­pert opin­ions have been shared in the me­dia and the gen­eral con­sen­sus is that the coun­try’s econ­omy will greatly ben­e­fit from these schemes. These schemes are an at­tempt by the Govern­ment of In­dia to reap ben­e­fits from the gold ly­ing with the pub­lic as well as re­li­gious in­sti­tu­tions in­clud­ing tem­ples and trusts. In­ter­est­ingly, apart from adding value to the na­tional econ­omy, the schemes also have a ben­e­fi­cial propo­si­tion for the gen­eral pub­lic, es­pe­cially those who pre­fer to ei­ther in­vest their gold like real money and earn in­ter­est on the in­vest­ment or mon­e­tise the gold and use it like cash in hand.

What fol­lows is a quick anal­y­sis of three pop­u­lar gold de­posit schemes: a) Sovereign Gold Bonds Scheme (SGB), b) Gold Mon­e­ti­za­tion Scheme (GMS), and c) Gold Coin/Bul­lion Scheme (IGC). A good un­der­stand­ing of the main points will help readers/con­sumers to make an in­formed choice if they are plan­ning to avail the ben­e­fits of these schemes.

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