Gold schemes will expand consumer choices, help economy: WGC

Mumbai: Lauding the launch of three gold schemes by Prime Minister Narendra Modi, World Gold Council (WGC) on Thursday said the initiative will expand consumer choices and help the economy.

"No one scheme or single way of buying gold is a total replacement of the other. Together, these options expand consumer choices.

"The healthy competition among forms of gold and the channels through which gold will be available to an average consumer will benefit the eco-system by raising standards, improving transparency and as a result generating trust in an industry that has huge employment and export potential," WGC Managing Director Somasundaram PR said in a release here.

"We believe that the Indian Gold Coin will guarantee purity and trust that is fundamental to gold. The Ashok Chakra Coin will become a part of the international basket of coins and could be an important contributor to exports," he said.

"The coin also aligns with the Make in India priority of the government as it will be minted in India," he said.

This will bring a range of collateral benefits to the industry by significantly raising infrastructure standards and ensuring trust in the industry and in gold, he said.

These schemes will be transformative for the Indian gold industry. However, the expectations from the schemes in the short term must be tempered as it will take time to build the infrastructure and products and for customer acceptance to grow, he said.

"We should see this announcement and launch as a strong indication of an intention to put gold at the heart of the financial system and make it work for the Indian economy. We should remember that even ATMs and demat accounts took time to become popular with a supportive eco-system," he opined.

Prime Minister Modi today launched Gold Monetisation Scheme (GMS), Indian Gold Coin and Sovereign Gold Bond in the national capital in presence of Finance Minister Arun Jaitley.