Hooked by interest: Indians sell 13 tons of gold

In India, gold owners have delivered more than 13 tons of gold to receive an interest-bearing gold bond. However, over a period of five years and still on a modest scale, given the immense amount of gold privately owned.

 

Give up gold, get paper

Since 2015, state institutions in India have been trying to get gold owners to sell hoarded gold coins, gold bars and gold jewelry. People should take their physical precious metal to the bank and get an interest-bearing gold bond. The official goal was, among other things, to contain the country’s high gold imports and to independently supply the domestic jewelry industry with gold. At that time, gold owners were offered 2.75 percent annual returns. But hardly anyone got involved in the first few years.

 

13 tons of gold collected

The State State of India (SBI), not to be confused with the Indian Central Bank (RBI), is now reporting a success. As part of this so-called Gold Monetization Scheme (GMS), 13.21 tons of gold have now been collected. In the 2019/20 fiscal year, 3.97 tons of gold were obtained. With an estimated gold production in Indian households of up to 25,000 tons, this amount still appears to be relatively modest. However, there is no denying clear growth within this program.