Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
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COIN FABRICATORS<br />
Coins are minted by organised refiners and more than 1,000 other coin fabricators. Many jewellery<br />
fabricators also have a capacity to mint coins.<br />
Although the fabrication of coins and minted bars was prohibited for 27 years (1963 - 1990), existing stocks within India<br />
of legal tender gold coins, dated 1962 and earlier (mainly British sovereigns), could be owned over this period.<br />
In India, the word “coin” is commonly used to describe a round medallion bought for savings or gift purposes. It does<br />
not imply legal tender status. The category includes minted medallions and quasi-coins in rectangular, oval and other<br />
shapes. It also includes crude “duplicate” sovereigns in a variety of weights (from 8 g to 1 g), also known as “guineas”.<br />
Coins are bought for 3 main purposes: family gifts, corporate gifts and personal savings. More than 50% of coins are<br />
expected to be exchanged for jewellery over time.<br />
Most coins are sold by jewellery retailers. Demand tends to be seasonal, sold mainly during the marriage seasons and<br />
at festivals, especially around the time of Diwali (October – November).<br />
More than 35 tonnes of fine gold may have been used to fabricate coins in 2001.<br />
NUMBER AND SIZE<br />
Anecdotal evidence indicates that there are more than 1,000 coin fabrication units. A few mint more than<br />
500 kg, but most mint less than 5 kg, and some less than 1 kg of coins, annually.<br />
In the south, for example, trade estimates indicate that there are more than 50 units in the cities of Chennai, Coimbatore,<br />
Bangalore and Hyderabad. For the State of Kerala, the estimate was 100.<br />
Mumbai is the most important fabrication centre. Its units dominate the minting of coins for corporate companies<br />
nationwide.<br />
Few units rely on gold coin fabrication as their sole source of income. Many also mint large quantities of silver coins. Most<br />
mint coins sporadically according to seasonal demand.<br />
TECHNICAL FEATURES<br />
Purities<br />
Although organised refiners adopt standard purities of 995 or 999, most coins are 916.6 (K22). The purity can also be<br />
specified by the retailer or corporate entity ordering the coins (e.g. K23, K21, K20 and K18).<br />
Weights<br />
Most organised refiners produce coins ranging from 0.5 g to 100 g. The most popular weights are 10 g and less.<br />
In the south especially, many fabricators produce a standard range of small coins: 1 g, 2 g, 4 g and 8 g.<br />
Many NRI’s are also reported to import foreign coins and minted bars from the Middle East and elsewhere, usually for<br />
conversion into jewellery.<br />
Decoration<br />
Coins are available in a plethora of different designs. Corporate companies and jewellery retailers often request that their<br />
corporate logo be featured on the obverse with a standard or tailormade design on the reverse.<br />
Many coins depict a Hindu God or Goddess or religious motif on the reverse. Some units report that 50% and more of their<br />
coins would be of this kind.<br />
Crude “duplicate” sovereigns normally depict Queen Victoria, Edward VII or George V. They sometimes also incorporate the<br />
initials of the fabrication unit.<br />
CONSUMER MOTIVATION<br />
Coins are bought for 3 main purposes: family gifts, corporate gifts and personal savings.<br />
All retailers stress that most coins tend to be exchanged over time for jewellery.<br />
Family gifts<br />
Popular during the marriage season, for other family events, and at the time of festivals. Many large urban retailers observe<br />
an increase in demand in recent years.<br />
82<br />
AN INTRODUCTION TO THE INDIAN GOLD MARKET