Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

COIN FABRICATORS
Corporate gifts
Although bought for this purpose since the early 1990s, Mumbai reports a surge in fabrication over the past 3 - 4 years.
Hundreds of companies nationwide have rewarded staff with coins or used them as promotional prizes for their customers.
Large orders for 100,000 and even 500,000 1 g coins, have occurred, alongside orders for 100’s and sometimes 1000’s of
5 g, 10 g and larger coins. Although large coin fabricators deal directly with corporate companies, many large jewellery
retailers also act on behalf of corporate companies.
Personal savings
Most retailers observe that the purchase of coins for personal savings purposes is normally low, but some in Mumbai,
Ahmedabad and the south report an increase in recent years.
For many consumers, coins are a vehicle to accumulate gold that will eventually be converted into jewellery.
However, retailers observe that most coins featuring a religious Hindu design tend not to be sold back by consumers, unless
there is an economic “necessity”. It would be “like melting down a God”.
In the south, several retailers commented that, for this reason, some customers were becoming resistant to buying coins of
this kind in large quantities.
DISTRIBUTION
Jewellery retailers
Apart from those coins produced for corporate companies, trade estimates suggest that more than 80% of coins bought for
private purposes are retailed by jewellery outlets.
In most outlets, the coins are usually not visible, as the retailer would prefer to sell jewellery at a higher profit margin.
The retail mark-up on coins is low, normally around Rs 50 (US$ 1.00), regardless of its weight. Some retailers sell them at
the carat gold price without any mark-up as a customer service.
Banks
In 1999, 3 banks tried to retail commemorative coins, but sales did not meet expectations. A relatively high price by Indian,
though not by international, standards was reported as an important reason for their lack of success.
Corporation Bank. Tendulkar coin. 1/4 oz. Minted by Perth Mint (Australia). Supplied by Societe Generale.
Bank of India. Millenium 2000 coin. 10 g. Minted by Royal Canadian Mint. Supplied by ScotiaMocatta.
State Bank of India. Millenium 2000 coin. 10 g. Minted by Pamp (Switzerland). Supplied by Rothschild.
Some banks are reported to be investigating how they can retail coins more effectively.
Internet
Fabmart Pvt Ltd (Bangalore) is pioneering the sale of 10 g coins through its website. There is a choice of 22 different designs
depicting Hindu Gods and Goddesses. Laser hallmarked. Minted by VNM in Pondicherry.
A small coin fabrication unit.
More coins appear to be fabricated in the west and south than in the north and east.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 83