India's largest alchemy company, MMTC-Pamp (Pamp Minerals and Metals Trading Company) believes that gold should be considered a currency. The organization primarily offers a gold account program that helps small-scale retail gold consumers store and melt gold and then earn interest.
In order to alleviate the situation of insufficient gold supply in the country, India has experienced a serious problem of income and expenditure account deficit (CAD) and excessive gold imports. Therefore, the organization proposed the Golden Monetization Program (GMS).
The program ensures that gold deposits earn interest as much as the currency stored in the bank.
Rajesh Kosra, general manager of MMTC-Pamp, explained the plan in Mumbai: the plan would treat gold as a currency.
Khosla said that the plan can also be seen as a solution: how to bring out 20,000 tons of gold that is idle in the Indian people.
Kosra said that, like having a savings account, you can have a metal savings account that exists as a fixed deposit and that the bank will provide interest at different interest rates. Since the interest earned on gold is tax-free, this is also a big advantage.
Under the GMS program, consumers must store a minimum of 40 grams of gold in the bank, just like a deposit. After the expiration of the deposit, the depositor can get back the principal and get a certain extra interest.
For banks, GMS proved to be a win-win solution, and gold can be used as part of the bank's statutory reserves, in line with the regulations of the Central Bank of India.
Alchemy companies have closed down one after another
MMTC-Pamp is a joint venture with PampSA of Switzerland and MMTC of India. Last year, the amount of gold was 45 tons.
In May 2014, MMTC-Pamp became the first internationally recognized alchemy company in India, and the only one of the 70 international alchemy companies with a total of 150 tons of alchemy.
Khosla also said that India has now been seen as a safer place after receiving international recognition of the London Gold Market Agreement; in Western countries, many recognized alchemy companies have closed down.
MMTC-Pamp set a target of 80 tons of gold in the fiscal year of this year, an increase of 78% over last year. Due to international recognition, the global mining industry is eager to supply raw materials to MMTC-Pamp.
Khosla said that India now has about 250 approved gold marking devices. MMTC-Pamp is also working on developing advanced software for the program, which can be completed in October.
Khosla said that our goal this year is 80 tons of gold. The solution envisaged by the company will ensure the gap between the supply and demand of gold, which is about 250 tons, which will be used to provide to jewelers.
Khosla told the media that even if only 10% of the idle gold is put into the market, this is enough to meet the needs of the market, and it also greatly solves the country's extreme thirst for gold.
In the intersessional meeting, Kosra also mentioned the upcoming India International Gold Conference, which will be held from September 12th to 14th. The conference will discuss how to effectively implement the gold monetization program.
India is the country with the most gold resources in the world, about 25,000 tons. It's like being in a big house, as long as we have a small part, we can solve the current 1% shortage. The annual demand for gold is about 9 million tons, and our economic capacity can only withstand imports of about 700 tons. Any effective solution can easily compensate for this imbalance.
A gold savings account needs to be the same as a rupee savings account, not only to earn interest, but also to manage.
This program is forecast to meet 90% of the gold demand, and many gold consumers in India have no more than 500 grams of gold. When the plan matures, the interest earned is no longer the rupee, but gold, and the gold on the investor's account will gradually increase.
Khosla also said that both the Bank of India and the Reserve Bank of India believe that this will be the future direction; at the same time, how to ensure the purity of consumers' gold is also a controversy.
He added that the company's goal is to make full use of its 150-tonne alchemy equipment capacity by next year.
For silver, Khosla said that the company plans to refine 100 tons of silver this year; from 2013 to 2014, the amount of silver is only 25 tons. In the next year, the company will make full use of 75% of its 600 tons of silver.
At the meeting, the chairman of the Business Solutions Company, Schoen Savage, said that in all the reforms in India, such as the 2003 Gold Control Act and the 2007 Gold ETFs Act, when the government put gold from 1991 to 1993. When the insurance premium was reduced from 45% to 0.7%, by September 2008, the scheme was actually ineffective, and the gold importer had to pay a 10% tariff and was also bound by the 80:20 plan. This program has also led to more smuggling activities, and the amount of gold smuggling is about 200 tons.
Fitted Sheet,Polyester Fitted Sheet,Printed Fitted Sheets,Microfiber Fitted Sheet
changxing sanxing textile co.,ltd , https://www.sxhometextile.com