Union Budget

union budget

The Union Budget 2015 has been announced by our Finance Minister Arun Jaitley carrying the motto 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.

Schemes of Union Budget

An announcement of the 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 increase, just fix the money in gold bonds. The beauty of this instrument is that when the gold price goes up the value of the bond price also goes up by the same amount,” he said.

People should purchase gold for the investment if they don’t want it for jewelry purposes. The Gold Bonds will provide a Fixed Interest Rate. This scheme will help in lowering 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 important announcement was the “Gold Monetizing Scheme”.  Through this program, investors may earn interest on the gold they own. Mr. Jaitley said, “It will also deploy the idle gold in the country and put it into fruitful utilization. Banks and other agencies must be able to monetize the gold deposited”. The country has 20,000 tonnes of gold worth in the open market over rupees 60 lakh crore. This new program will substitute the old Gold Deposit Scheme.

Arun Jaitley announced to introduce Gold Coins in the country. Union Budget will help to recycle the gold available in the country. These three announcements will surely boom the Gold Market of India.

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