Investment in Gold and Schemes of Gold in GOI

1. NAGARAJU L G
ASSISTANT PROFESSOR
SCHOOL OF COMMERCE
REVA UNIVERSITY
BENGALURU-64

2.  There's no better way of investing in gold
than through the government-backed
methods. Know more about Gold
Monetization Scheme, Sovereign Gold Bonds
Scheme, and Indian Gold Coin..

3.  India's fixation on gold is legendary – the country is the
world's second-largest consumer market for the yellow
metal. Gold is also a must have in every Indian
investor's portfolio.
 Gold prices often go up when other financial assets like
stocks and bonds fall in value. During financial crash,
inflation or global trade issues, an investment in gold is
considered as a safe haven. This means by investing in
gold, you can ensure good returns even during bad
phases. And there's no better way of investing in gold
than through the government-backed methods.

4.  The Gold Monetization Scheme (GMS) was introduced by
the Central Government in 2015-16.
 Under GMS people can deposit gold in any form gold bars
or coins, or even jewellery and the investor will get an
interest on the weight of the deposit
 Under the GMS, customers may be asked to complete KYC
(know-your-customer) process
 The interest rate is determined by the banks individually
 The minimum investment required under GMS is 30 grams
of gold
 There is 3 term deposit plans- short-term (1 to 3 years),
medium term (5 to 7 years), and long-term (12 to 15 years)
are available under the GMS.

5.  Indian Gold Coin (IGC) is the first ever national gold coin of Indian
and it was launched by the Prime Minister Narendra Modi in 2015.
 The IGC has the emblem of Ashok Chakra on the one side and face
of Mahatma Gandhi on the other.
 IGC is available in the denomination of 5, 10 and 20 grams
 The pricing of the coin is being managed by MMTC, a Government
of India Undertaking
 Every Indian Gold Coin is certified as per the Bureau of Indian
Standards (BIS) Hallmark
 Customers can purchase IGC through selected bank branches and
MMTC units
 MMTC also offers the buy-back option for IGC through its own
showrooms across India
 MMTC will repurchase the Indian Gold Coin, in intact tamper-proof
packaging and with original invoice, at the prevailing gold base rate.

6.  Sovereign Gold Bonds Scheme (SGBs) are government
securities denominated in grams of gold. They are
substitutes for holding physical gold. Investors have to
pay the issue price in cash and the bonds will be
redeemed in cash on maturity.
 Under Sovereign Gold Bonds Scheme (SGBS) gold
bonds are issued in paper and demat form
 SGBS are issued by the Reserve Bank of India
(RBI) and are alternatives to owning physical gold
 Bonds will be tradable on stock exchanges within a
fortnight of the issuance on a date as notified by the
RBI

7.  The investors will be paid Interest on the amount of
initial investment at the rate notified by RBI.
 The tenor of the bond will be for a period of 8 years
with an exit option from 5th year onwards to be
exercised on the interest payment dates

8. THANK YOU