Govt likely to launch 3 gold schemes on Nov 5

The central government is planning a big-bang launch of three schemes to satisfy the need for investing in gold.

The schemes are likely to be launched on November 5, a week before Diwali.

A final decision on launch date and guidelines for bonds and the interest rate payable are in the final stage.

The first is a gold monetisation scheme, where consumers will be invited to offer idle gold or jewellery for deposits with banks.

The Reserve Bank has issued guidelines and the government has notified it.

Ketan Shroff, spokesperson of the Indian Bullion and Jewellers Association, said: “We support the GMS and will advise our clients to earn interest on gold and jewellery lying idle with them.

Another scheme being launched will be gold coins with the Ashok Chakra embossed.

The government’s Mumbai mint has already manufactured and kept ready 20,000 coins of five grammes each and 30,000 of 10g each, for distribution to banks and post offices, which will be selling these from the launch date.

It is understood that gold seized by various government agencies might have been used to manufacture these.

Another scheme is of gold bonds, investing cash without actually buying gold. The details are being prepared.

Image: Valuer Eve Chong, demonstrates the valuation process for jewellery at a MoneyMax pawn shop outlet. Photograph: Edgar Su/Reuters