Menu
  • Crash Course on Orderflow
  • Training
  • Premium
  • Traders Cafe
  • Intraday signals
  • MCX Signals
  • Library

Marketcalls

Simply Intelligent Technical Analysis and Trading Strategies

  • Software
    • Amibroker
    • NinjaTrader 7
    • Ninjatrader 8
    • Option Action
    • Market Analyst
    • Metatrader
    • Python
    • Datafeed
  • Market Profile
    • Orderflow
  • Markets
  • Commodities
  • Forex
  • Economy
    • Banking
  • Webinars
  • Trading Lessons
    • Algo Trading
    • Infographic
    • Video
You are here: Home / Commodities / Gold Monetization Scheme Explained

Gold Monetization Scheme Explained

June 4, 2015 by Vidhyaa Sree 1 Comment

After much waiting and anticipation, finance ministry has recently released a discussion paper, which is mainly proposed on the available gold monetization scheme. Moreover, finance minister has even promised to get acquainted with the available budget speech. Estimating the gold holding among so of the Indian households is now getting at none other than 20,000 tons+, and the finance minister is likely to introduce a perfect gold monetization scheme.  This scheme is likely to replace both the gold metal and gold deposit loan scheme. With the help of this new scheme is likely to allow the depositors to work in order to earn the interest balance in the metal account. Moreover, the jewelers are likely to obtain perfect loans in the available metal account.

#GoldMonetisationScheme: Tenure of gold deposits to be a minimum of 1 year; scheme to have tax exemptions. pic.twitter.com/nrFyFomGzy

— EconomicTimesMarkets (@ETMarkets) May 19, 2015

Objective of the gold monatization scheme is to:

1.Mobilize the gold held by households and institutions in the country.
2. Make it available to banks and Jewelers.
3. Reduce gold imports.
4. Improve liqiudity in market.
5. Make customers gold secure and a perporming Asset.

Here is how it works
Gold Monetization Scheme

 
More about the scheme

With the help of this scheme, banks and other financial dealers would now be able to monetize the gold structure, without any problem. The main aim of the discussion paper is to avail public comments on some of the proposed schemes. The comments are likely to be posted on the available government side, and there are many comments, already available in this segment. Now, the minimum set amount of the gold is proposed to be at around 30 grams, which will encourage even the small depositors.

Track the Gold Price today in your City

Look for the guidance

However, in the extant schemes, the minimum amount of gold is likely to be towards 500grams. Gold can be placed in any of the form, be it in the jewelry segment or in the form of bullion. The hallmark centers in this area is going to deal with the testing centers, which are known for check out the purify level of the gold. On the other hand, the testing center is likely to tell the customers, regarding the approximate amount of gold, purchased by the customer. In case, the customer agrees, that person is likely to do KYC, and provide consent for melting the gold amount. The time, used for the testing is nearly 45 minutes.

#GoldMonetisationScheme: Banks to decide on #InterestRate on the gold monetisation; proposes minimum 30 gm of gold deposits under program

— EconomicTimesMarkets (@ETMarkets) May 19, 2015

Look for the melting

In this 45 minutes of testing, there is going to be a preliminary test and with x-ray fluorescence machine, to be used for the same purpose. In case, the customer disagrees to this testing mechanism, he has every right to take the ornament back. Moreover, for the second testing area, the fire assay can be hold responsible for complete destruction of the said ornament. This method is going to take place only when the customer agrees to the preliminary test results.

For the second test

In this stage, before starting the melting procedure, the ornament is cleaned thoroughly, to remove studs, dirt and even melted, under the same segment. This can help you to understand the net value of gold. Then, the gold ornaments are likely to be melted just in front of the customers, which can be used to ascertain the metal’s purity rate. This procedure might take place for three to four hours. However, in case, you are planning to open a gold saving account, make sure to produce the certificate.

Various Stages in Gold Monetization Scheme
1. House hold or institution has to open gold saving account with bank.
2. Gold that costomer wants to deposit will be cleaned and checked for purity at Assaying centers.Assaying center will provide recipet to customer.
3. Assaying center informs bank of value to be credited to customer.
4. Gold is than sent to refineries for melting or storage.
5. banks tells refineries to send gold to jewellers.
6.Refineries send gold to jewellers on banks information.

How Deposited Gold will be utilized to benefits the economy?

CRR/SLR:
It is proposed that Banks may be permitted to deposit the mobilized gold as part of their CRR/SLR requirements with RBI. that will increase money flow in market.

Foreign Currency:
Banks may sell the gold to generate foreign currency. The foreign currency thus generated can then be used for onward lending to exporters / importers.

Coins:
Bank may convert mobilized gold into coins for onward sale to their customers

Exchanges:
Banks may buy and sell on domestic commodity exchanges, where mobilized gold can be delivered.

Lending to jewelers:
Bank may Lend the Gold to the Jewelers,domestic availability of gold will increase.India’s import bill will come down.that will reduce CAD. It will also boost jewelery industry.

Related Readings and Observations

  • Gold Trading Outlook : On the Verge of BreakoutGold Trading Outlook : On the Verge of Breakout Gold price action remains muted despite the stock market crashing, global events like trade war, syrian attack. Its been trading in a very compressed range 1300-1350 range since the start […]
  • Gold Medium Term Outlook – Trading Sentiment turns BullishGold Medium Term Outlook – Trading Sentiment turns Bullish Since last two years Gold is currently trading in a very broader range 200 point range (1150-1350 on weekly timeframe). Trading sentiment for this week turned to positive which indicates […]
  • Gold Inching Higher towards 1295-1300  Resistance Band – Medium Term OutlookGold Inching Higher towards 1295-1300 Resistance Band – Medium Term Outlook Gold had done a short term trend reversal from the recent swing low of 1251. Trading Sentiment holds positive on both daily and weekly timeframe. Current surge towards 1280 reference […]
  • How to Get a Firm Handle on Gold’s Ups and DownsHow to Get a Firm Handle on Gold’s Ups and Downs In the closing days of November, the Daily Sentiment Index registered a ten-day average of just 9.1% gold bulls. That was only the third time in the sentiment gauge's 30-year history that […]
  • Gold Medium Term Trend Analysis – December OutlookGold Medium Term Trend Analysis – December Outlook Just thought of posting quick update on Gold Medium term trend. Price structure of the Gold Weekly Charts are moving in a sideways bearish trend since mid of 2013. Longer term bearish […]
  • Gold Pointing for Weakness Ahead?Gold Pointing for Weakness Ahead? Now gold is trading around $1211 & as we can see on charts gold following a upward trade line & reaching to the major resistance zone from $1224-1245. While looking at the big time […]

Filed Under: Commodities, Personal Finance Tagged With: Commodities, Gold, Gold Monetization Scheme

About Vidhyaa Sree

Vidhyaa Sree is a freelancer/Content Writer and author of www.gogreenguyz.com

Comments

  1. Ashok says

    June 7, 2015 at 4:50 am

    Hi,

    This looks like scam too me. The Govt hold less than 600 Ton GOLD, if tomorrow we have monetary crisis (which is coming from western govt debt trap ) and people runs to bank to get their gold deposit back how the hell they going to give customer their gold back ? If even there is run for 1000 ton gold the govt does not have that much gold to redeem people gold certificate.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Email Newsletter

Sign up to receive email updates on latest trading strategies , analysis & financial market updates

We Respect Your Privacy

Premium Access

Username:
Password:
Remember Me
Lost your password?

Tools For Traders

  • Marketcalls Android App
  • MCX Signals
  • Intraday Signals
  • International Commodities
  • OI Tracker
  • Participation OI
  • Your Broker
  • Market Sentiment Analysis

Amibroker Updates

[Recorded Webinar] How to Send Bracket Order, Cover Order and Multiple Orders using Amibroker and AlgoAction Platform

December 25, 2018 By Rajandran 1 Comment

AlgoAction Now Supports Bracket Order and Multi Orders

December 23, 2018 By Rajandran Leave a Comment

Code Snippet : ORB – Open Range Breakout Levels – Amibroker AFL Code (Better Version)

December 4, 2018 By Rajandran 1 Comment

Button Trading in Amibroker using AlgoAction Platform

December 2, 2018 By Rajandran Leave a Comment

[Recorded Webinar] Chart Based Vs Scan/Exploration Based Automated Trading – Amibroker

December 2, 2018 By Rajandran 1 Comment

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Metatrader Updates

MetaTrader 5 Demo Servers Now Available for BSE Currency Markets

March 20, 2018 By Rajandran 8 Comments

ChartIQ – WebTrader for MT4

December 4, 2017 By Rajandran 4 Comments

Metatrader 4 – Web Platform Overview

October 29, 2015 By Rajandran 9 Comments

William VIX FIX Indicator for Metatrader 4

May 16, 2015 By Rajandran 9 Comments

How to Install Custom MQL4 indicators in Metatrader

November 14, 2014 By Rajandran 6 Comments


About | Contact Us | Terms and Conditions | Privacy Policy | Support Policy | Privacy Policy | Refund Policy | Disclaimer


© Copyright 2018 Marketcalls Financial Services Pvt Ltd · All Rights Reserved · And Our Sitemap · All Logos & Trademark Belongs To Their Respective Owners·

Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither marketcalls.in website nor any of its promoters shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon.