Indian Gold Schemes launched by Prime Minister – pros and cons

Honourable Prime minister of India, Shri. Narendra Modi had launched 3 gold related schemes in the Indian market. This was primarily done with the intent to reduce the demand of physical yellow metal from the Indian commodities market. The reason to introduce these schemes was that gold has been dominantly formed the bulk of India’s imports for over decades which has resulted in the crippling of the India’s Current Account Deficit (CAD). CAD is a term used in terms of import costs gets higher as compared to the revenue earned by the exports.

Prime Minister unveiled its first scheme i.e. Indian Gold Coin. The second scheme thus launched was the Gold Monetisation Scheme and lastly the Government announced Sovereign Gold Bond Scheme.

Indian gold coin

Indian Gold Coin

This Indian Gold Coin is very much unique in its presence for it shows various counterfeit measures and tamper proof packaging. The coins will be issued in the denominations of 5 and 10 grams. It come inscribed with the Ashok Chakra.

gold bar

Gold Monetisation Scheme

The gold monetisation scheme is one of the specialised schemes launched by the government of India in the hope of boosting the gold market and reduce the capital crunch. The gold whether in the form of raw or gold jewellery can be deposited in the nearby bank and the users will then earn interest over it. The primary intention is to leverage the untapped potential large quantities of gold lying idle in the safe zone of cupboards at home.

Gold Sovereign Bond Scheme

Instead of buying gold in physical form investors can park their money in bonds which are backed by gold. The bonds will be available both in demat and paper form. Sovereign Gold Bond has more or equal advantage against the physical gold.

The Indian government has been very much positive in looking forward to gain the benefits of this newly launched schemes. However, there is a cause for concerns in these highly ambitious schemes.

gold sovereign bond scheme

Concerns

  • In Gold Monetisation Scheme, the intention was to uncover the the gold jewellery from home and allure the users to deposit in the bank. This could backfire the plan if the gold to be deposited in the bank is imported i.e. fresh gold shall be kept in the bank.
  • Also, the gold deposited in the bank will be returned in the form of gold bar or a coin which is the most demotivating factor for Indian women who consider gold as a Dhan Lakshmi or women’s ornament.

The government must consider these factors before aiming for any obnoxious results. If the scheme functioned the way they were programmed to, there is no doubt that it will fetch better returns to the Indian economy

Will India win Gold at the Rio Olympics 2016 ??

31st December is just round the corners and I believe most of you are engrossed in your plans for the party night. Woohoo !! celebrations will happen to welcome the New year 2016. Excitement will be at the fullest in the next year with boys & girls, uncle & aunty, husband & wife all committing to your new year resolution. However, there is one category of youth who all have dreamt this one thing in their life – win gold at Olympics !!

No wonder, Indian sports delegates  will find a great opportunity to win gold medal at the 2016 Olympic Games which is will be held at a pleasant place of Rio De Janerio, Brazil. Indian sports are well ready to take this leap forward to make India proud of its achievements in sports by bagging the highly coveted and respected Indian gold coin.

Dhyan-Chand-Bharat-Ratna1

 

However, going into a bit of stenotype thinking, the golden days for India were during the pre-independence period when legendary Dhyanchand caught attention of the German Chancellor Hitler for latter invited Dhyanchand to join the German team for his impressive sportsmanship and Hockey skills. This was the shining period for India only to find herself gripped under the slavery of British rule.

Abinav Bindra Indian Olympic gold winner

India bagged its taste of first Gold medal in the 1928 Amsterdam Olympics. The Indian national Hockey team had given a stand-out performance then and had added her bucket with gold medal in 11 consecutive out of the 12 Olympic games. However, Indian then gave a blistering stroke at the 2008 Beijing Olympics when Indian shooter Abhinav Bindra bagged India’s first India’s first ever solo gold medal. The Indian Gold Coin was held in high esteem for the pride it has brought in. The following 3 Olympics games saw no winner for this Indian Gold medal.

Rio olympics 2016

 

The 2016 Rio Olympics has revived hopes not only among the sports players but also among the lacs of Indian people who will be clinging to the idiot box or radio and watch these games with this one question in mind – Will India win gold medal at Rio Olympics ?

Indian Gold Mines in detoriating condition

Gold is certainly an auspicious metal and has gained a lot of significance for the people of India since time immoral. This yellow piece of metal is often regarded as the woman’s jewellery. It is therefore a ritual during marriages to offer the bride with some gold to preserve her honour in the family. Moreover, from the economic point of view, it is considered as universal currency. The Indian Rupee is also backed by gold which is one of the key factors in determining the exchange rate.

Of lately, the demand for the gold in terms of jewellery, gold coins or bars have increased to a great extent. Adversely, the gold mines production has been continuously detoriating in terms quantity.

Gold in India

The aggregate in situ production of raw gold are assessed at 22.4 million tons. India’s commitment to world gold creation is quite meagre capped at 0.75 for every penny. However, the gold creation of South Africa is 60 times, of Canada 22 times and of Australia is 5 time than that of India. This proves India contributes a lot less to the world gold production.

There was a steady decrease underway for a long time since independence to 1990-91 after which the changing patterns have been closely observed. On the other hand, some recuperation has been made after 1999-2000. This helped the Indian Government to achieve slightly higher gold production from the mines.

There are three gold fields in India, Kolar Gold mine, Kolar region, Hutti Gold mine in Raichur region (both in Karnataka) and Ramgiri Gold Field in Anantpur region (Andhra Pradesh).

Kolar gold mine

Kolar Gold mine

Kolar Gold field is located in the south of the Karnataka state. The Bharat Earth Movers Limited (BEML) a Public Sector company was established by the then Indian Government to look into the affairs of the this gold mine. It was called “Little England” by the Britishers due to its cool temperate weather and landscapes similar to England. It was earlier regarded as the gold town of India but had to close down due to low level of production.

hutti gold mine

Hutti Gold Mines

These Hutti Gold Mines are also located in the Raichur district of Karnataka. It is one of the ancient gold mines to be known to the Indian subcontinent. The Hutti Gold Mines Co. Ltd. Under the Government of Hyderabad was created to manage the process drilling, transportation, purifying etc. The fundamental issue with the Hutti mines is the second rate of metal. It is the only few gold mines in India to produce gold.

anantapur gold mine

Anantpur Gold Mine

Anantpur district is located in Andhra Pradeshwhich includes Ramgiri gold mines. One special thing about this gold mine is that 50% of the gold is used for making gold jewellery.

Little amounts of gold are gathered from streams in Shimla and Bilaspur in Himachal Pradesh, Kargil zone along the porches of the Indus River and in alluvial and morainic stores of Dras River in Jammu and Kashmir, Balaghat, and Seoni locale in Madhya Pradesh, Bastar, Raipur and Raigarh in Chhattisgarh and parts of Purulia region of West Bengal.

Read more information on Indian Gold Production and Distribution

You may want to read on Indian Gold Coin