India Has Its Own Gold Coins Now

India is the second largest consumer of Gold. People invest in gold in different forms in the country including purchase of physical gold, gold bonds, gold ETFs and gold futures. But the most popular form of gold investment in India is physical gold. People who want to invest in physical gold usually invest in gold ornaments and gold coins. Until now, banks and post offices used to sell gold coins imported from outside the country but that’s all about to change now as India will be producing its own gold coins. Indian Overseas Bank started selling gold coins last Friday in its branches in Mumbai, right in time for Gudi Padwa. These coins are minted in India and will have the national emblem of Ashoka Chakra engraved on one side and the face of Mahatma Gandhi on the other side.These gold coins will also join the basket of international coins.

What is Different about these Gold Coins?

The gold coins sold by banks and post office until now, were the ones imported from other countries. In 2013, RBI decided to curb the demand for gold and barred banks from selling gold coins and the post offices followed this decision too. So, investors who wanted to invest in physical gold had no other option but to invest in gold jewellery for a much higher rate and lesser quality. But now the investors have a better option as they can purchase these gold coins. These gold coins will be minted in India and sold by MMTC at selected banks in denominations of 5, 10 and 20 grams. The coin will be of 24 karat and packed in tamper proof packaging. The coin also has counterfeit features like one in currency and hallmark certification that makes it much more safer than gold ornaments. Currently, the RBI does not allow banks to buy these coins back, so investors who are looking to re-sell these coins have to go to a jeweller. But the quality and authenticity of these coins will definitely get the investor the best price in the market.

Why is it a Better Option Compared to Ornaments?

When it comes to investing in physical gold, investing in gold bars and coins is much better than investing in jewellery as there are higher chances of the gold jewellery getting lower returns if the gold is of a lower quality. It is also a known fact that you forgo a part of returns while re-selling gold jewellery due to wastage and other charges.

Gold bonds and ETFs are definitely the safer bet when it comes to investing in gold. But the best investment option for physical gold will always be gold bars and gold coins.

Read More on Gold