MMTC ties up with major banks to retail gold coins

Public sector major MMTC has joined hands with HDFC Bank, ICICI Bank and Andhra Bank to retail gold coins with a new buyback option.

Besides its own outlets across the country, MMTC has tied up with Indian Overseas Bank, Vijaya Bank, Federal Bank and YES Bank to sell gold coins in denominations of 5 gm and 10 gm coin and 20 gm bar.

MMTC has also announced a transparent buyback of gold coins made of recycled gold. It will repurchase the gold coins if they are given back intact in the same tamper-proof packaging with the original invoice at MMTC outlets. Gold coins will be bought back at the prevailing gold price, providing much needed liquidity for customers buying Indian Gold Coins, MMTC said in a statement on Thursday.

With the new partnerships, the network selling the sovereign gold coin will touch 300 outlets during Dhanteras - an auspicious occasion to buy gold - that falls on Friday.

Launched last year, the Indian Gold Coin has the national emblem Ashoka Chakra engraved on one side and Mahatma Gandhi on the other side. Hallmarked by the Bureau of Indian Standards, the 999 fineness coins are of 24 karat purity and are minted by the India Government Mint in Mumbai and Kolkata, said MMTC.

Ved Prakash, Chairman and Managing Director, MMTC, said in the last one year of the launch of the Indian gold coin, seven leading banks in India have started retailing the coins and would partner more banks soon to widen the distribution.

The purchaser of the gold coin would not only contribute towards the country's economic growth but also aid in recycling gold through the transparent buy-back option available at MMTC showrooms, he said.

Prithviraj Kothari, Director, RiddiSiddhi Bullions, said gold and silver prices were likely to remain subdued this calendar year as the dollar strengthens against major global currencies, besides a host of other weak fundamentals acting against precious metals. With some intermittent volatility, he said, gold may touch $1400 an ounce by December-end, translating to Rs 30,050 per 10 gm in India.

The gold import bill fell to a decade-low of $7.2 billion in the first six months of this year, according to Commerce Ministry data.

Gold demand has been lacklustre so far this year as consumers expect prices to fall further.

"A price level of Rs 28,500 per 10 gm will provide a good opportunity for buyers," he said.

However, the fall in global gold prices may not reflect in India as the rupee is expected to depreciate proportionately against the dollar, he said.

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