Govt to launch Gold Monetisation Scheme ahead of Diwali

Along with the GMS, gold coins engraved with Ashok Chakra will also be unveiled

At a time when Indian consumers are planning to buy gold on the auspicious day of Dhanteras, two days before Diwali, government is planning a big-bang launch of three schemes to attract unproductive gold to the system and satisfy need for investing in gold by selling gold bonds without buying gold.

The bonds will contain sovereign gurantee. The government will sell Ashok Chakra embossed gold coins through banks and post offices.

The three gold schemes envisaged by the BJP-led government at Center are most likely to be launched on November 5, just a week before Diwali.

Decision on the launch date and guidelines for bonds and interest rate payable on it are in final stages.

The first schemes is gold monetisation scheme, where consumers will offer idle gold, jewellery for deposit with banks. RBI has issued guidelines and government has also notified the scheme.

Ketan Shroff, spokesperson of the Indian Bullion and Jewellers Association saidt, "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 Ashok Chakra embossed on it. Government's Mumbai mint has already manufactured and kept ready 20,000 5 gram and 30,000 10 gram such coins for distribution to banks and post offices who will be selling from the launch date.

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

Under gold bonds scheme, gold returns would be available by investing cash without actually buying gold. Details of the scheme including interest rate payable, how to determine gold price etc are still being worked out. Financial planners are very much enthused about success of the bond scheme.