This
Diwali ,Government has launched two schemes like Gold Monetization
Scheme and Sovereign Gold Bond. The main purpose of these schemes is
to offer the benefit of Gold price volatility and hedge against
inflation to investors. It has dual benefits of earning power i.e.
interest yield (interest on the invested amount equivalent to the
value of Gold deposited), that does not exist in the traditional way
of investing in gold like physical gold or Exchange Traded Funds.
Moreover, this will save vault charges which are currently being
borne by individuals for safeguarding gold.
GOLD
MONETIZATION SCHEME: This
scheme works like an gold savings account which earns interest for
the gold that is deposited and will also save recurring cost. Gold
can be deposited in any physical form like jewellery, coins or bars
subject to a minimum of 30 grams. These accounts can be opened for
three different tenures - short term(1-3 years) , medium term (5-7
years) and long term (12-15 years). The interest is calculated on
basis of gold weight and also the change (appreciation) in the value.
On maturity,the depositor can buyback gold equivalent to its value or
take away the amount as per his preference on application. In case,
if the depositor wants to redeem the Gold Saving account interim, it
is also possible
SOVEREIGN
GOLD BOND:
The bond can be subscribed by by resident of India which includes
individuals, HUFs, trusts, charitable institutions, etc. The minimum
investment required is of 2 grams to maximum 500 grams . Although,
the maximum period is of 8 years an easy exit from 5th, 6th and 7th
years onward. The interest to be earned is at 2.75 percent interest
per annum on the amount initially invested. The bonds would be listed
on the exchanges which will provide easy entry/exit route to the
investor. The pricing of this bonds is dependent on weekly average
price of gold by the India Bullion and Jewellers Association Ltd. The
price would also be made available on RBI website. These loans can be
used as collateral for loans and other purposes.
The
main purpose of these schemes is to encourage participation in
tradeable gold and to reduce the our dependability on the imported
gold.It will also help to reduce the current account deficit. Also,
the idle gold lying in our households can also get more earning value
attached to it.
More
information can be made available at the government links as below:
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