Govt backing increases appeal of Indian Gold Coin: Survey

Guaranteed purity, hallmarking and standardisation are likely to increase the consumer appetite for Indian Gold Coin, with 85 per cent respondents saying the government's backing made it extremely relevant, World Gold Council said in a report here.

Among respondents, 87 per cent said guaranteed purity was extremely relevant to them, with 85 per cent stating that national manufacture and the government backing were relevant, according to the report 'India's gold investment evolution, Indian Gold Coin: An introduction to branded gold coins'.

The hallmarking and the standardisation of the coin scored highly too, with 84 per cent citing them as relevant.

Survey was carried out among respondents aged between 25 to 60 years from socio-economic groups including professionals, businessmen and women and housewives in eight top Indian cities. Everyone surveyed was a financial decision-maker.

Six features of the Indian Gold Coin are 24 carat purity, hallmarked by the Bureau of Indian Standards (BIS), tamper- proof packaging, standardisation, buy-back options and available in sizes from 5 to 10 grams.

It also has the Ashoka Chakra emblem and government backing.

The report revealed that 59 per cent of respondents would buy coins with the first six features, but 63 per cent would buy a coin with all features.

While buying coins most women preferred jewellers while men prefer banks, the report revealed.

"As distribution, which is now done by four banks, expands to more banks and leading retailers, the Indian Gold Coin will emerge as the preferred form of gold investment in India as well as for purchases during festivals and for gifting on special occasions.

"It also fills a gap in the international basket of national gold coins," WGC Managing Director, India, Somasundaram PR told PTI here.

It will not only boost the gold monetisation scheme but also improve recycling and increase exports of coins as a collectors' item, he added.