Oct 14, 2016

WGC-MMTC Report Says Consumers Prefer Official Indian Gold Coin Over Unbranded Ones

A new report based on a study commissioned by the MMTC and the World Gold Council says that Indian consumers have indicated a clear preference for an Indian Gold Coin over regular, unbranded coins that were more commonly available till now, as it is backed by the government and is a quality product. The coin has been released by the Indian government as one of its initiatives under the gold monetisation programme.

The report titled ‘India’s gold investment evolution, Indian Gold Coin: An introduction to branded gold coins’, highlights consumer preferences mapped against a wide range of parameters like awareness, relevance, uniqueness, size and accessibility. It concludes that the official coin is preferred because of its guaranteed purity, its standard features, Government backing and the Make in India imprimatur.

Consumers are most likely to buy the Coin during Diwali or as gifts for birthdays, marriages and other special occasions, the report says.

The Indian Gold Coin is of 24 karat purity and 999 fineness. It is currently available in denominations of 5 and 10 grams as well as a 20 grams bar. The coins have Ashoka Chakra engraved on one side and the face of Mahatma Gandhi on the other. The report says that MMTC has successfully sold Indian Gold Coins to the tune of 185 kgs since launch.

Pricing is transparent and competitive, and with BIS hallmarked gold, tamperproof packaging and advanced anti-counterfeit features, it is seen as being very safe. The Indian Gold Coin is currently one of the purest forms of gold available in the country and is ‘Minted in India’.

Banks and branded jewellers are the preferred channels to purchase the Coin.

Ved Prakash, CMD, MMTC said, “Apart from MMTC outlets, the Indian Gold Coin is currently available at four banks – Indian Overseas Bank, Federal Bank, Vijaya Bank and Yes Bank. The total number of outlets is close to 200 and in the near future, our focus is to strengthen distribution by signing up more banks and India Post to ensure it’s available to consumers across the length and breadth of the nation.”

Somasundaram PR, Managing Director, India, World Gold Council said “As distribution expands, the Indian Gold Coin will emerge as the preferred form of investment gold in India as well as for purchases during festivals and for gifting on special occasions. The Indian Gold Coin also fills a gap in the international basket of national gold coins.”

The report is based on a survey conducted by Nielsen India amongst 1,180 respondents from eight top-tier Indian cities - Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad and Kochi.

Pic caption: Indian Gold Coins
Courtesy WGC-MMTC report