The Union Budget 2015 has been announced by our Finance Minister Arun Jaitley carrying the moto of “Achhe Din”. His vision is to make India a Global Power and Investment Hub with a Growing Economy. He introduced some new Gold schemes which will present a new option for the investors. These are:
- Sovereign Gold Bond
- Gold Monetizing Scheme
- Gold Coins- Recycling the gold of the country
An announcement of Finance minister that boom the investors’ heartbeat is Sovereign Gold Bond. This proposal was made to reduce India’s import of Gold. Sovereign Gold Bond will be used as an alternative to purchasing physical gold. There will be a fixed rate of interest and after selling the bond investors will get the value of the gold. In this scheme, investors will get a paper or certificate issued by the Government instead of getting the metal in physical form.
The details of this bond have not been exposed, but this move will surely be a landmark in the Gold Industry. . Nimesh Shah, MD and CEO of ICICI Prudential Asset Management, said these bonds exist in some other countries and offer a good alternative for investors who don't want to buy physical gold. "If you have the belief that gold prices will go up, just put the money in gold bonds. The beauty of this instrument is that when the price of gold goes up the value of the bond price also goes up by the same amount," he said.
People should buy gold for the investment if they don’t want it for jewellery purposes. The Gold Bonds will offer a fixed Interest Rate. This scheme will help in reducing the import of gold into the country. India imports 800-1000 tonnes of gold each year. So this scheme will definitely boost the gold investments.
The second significant announcement was “Gold Monetizing Scheme”. Through this scheme, investors can earn interest on the gold they own. , Mr Jaitley said, “It will also help mobilize the idle gold in the country and put it into productive use. Banks and other agencies would also be able to monetize the gold deposited”. The country has 20,000 tonnes of gold worth over rupees 60 lakh crore. This new scheme will replace the old Gold Deposit Scheme.
Arun Jaitley announced to introduce Gold Coins in the country. It will help to recycle the gold available in the country. These three announcements will surely boom the Gold Market of India.