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How many times have you yearned for transparency in the deal while having to sell used jewellery for some cash?
Your neighbourhood moneylender/pawnbroker or the jewellery biggies in your city may readily offer to buy used jewellery.
However, this will be the case only if you are willing to take a good “haircut” on the pricing of jewellery that is being tendered and not seek too much transparency on the deal.
Sensing an opportunity in this space, Muthoot Exim Precious Metals - part of the Muthoot Pappachan Group - has forayed into the business of buying of scrap gold from individuals, promising more transparency in the entire pricing process.
This company has now started setting up ‘fulfillment centres’ in the name of ‘Muthoot Gold Point’ across the country for this purpose, Keyur Shah, Chief Executive Officer, Muthoot Exim Precious Metals said.
“In the next two years, we are looking to increase the number of such centres (Muthoot Gold Point) to twenty. We have launched the first centre three months back at Coimbatore in Tamil Nadu”, Shah told Business Line here.
More ‘Muthoot Gold Point’ outlets will be rolled out-one each at Delhi (Karol Bagh) and Chennai (T Nagar) - in the coming weeks, he said.
Getting into the business of buying gold/jewellery has benefits flowing to the buyer (good business), the country (from a macro-economy perspective) and also to the seller (in terms of transparency in pricing), according to Shah.
BETTER DEAL
Shah said that Muthoot Gold Point will be able to offer a transparent pricing as it is directly connected to the live bullion market and there will not be padding just as is the case with other jewellers who buy gold.
He also promises a better deal on the purity front - an area that is always fuzzy for any ordinary aam admi customer.
“We are investing in state-of-the-art machines with can penetrate and give out details of as many as 20 other materials (besides gold) in any precious metal/jewellery”, Shah said, adding that the company wants the customer to “feel empowered”.
Through this initiative, this company hopes to buy a quantity of say 8-10 tonnes of gold in next two year.
Shah admitted that this would be quite minuscule effort in bringing gold to the mainstream given that nearly 20,000 tonnes are said to be stocked by Indian households.
India is the largest consumer of gold with average imports every year ranging from 800-1000 tonnes.
srivats.kr@thehindu.co.in
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