Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

COIN FABRICATORS
SEASONALITY
Most coins tend to be sold at the time of festivals and during the marriage seasons. Many fabricators and
retailers report that about 50% of annual fabrication and sales occurs around Diwali (October-November).
QUANTITY
Generally, large jewellery retailers report that their coin sales would range from less than 1% up to 5% of their
turnover. Some fabricators and bullion dealers also retail directly to corporate companies and the public.
Coin sales appear to be higher in large cities. For most small urban and rural jewellery retailers, sales seem to be
non-existent or extremely low. Private demand in the west and south also appears to be higher than in the north and east.
Estimating the size of the coin market is extremely difficult as fabrication is so fragmented.
Informal trade estimates suggest (at this time) that 15 tonnes may be fabricated in the west, 10 - 15 tonnes in the south and
less than 10 tonnes in the north. Fabrication in the east is reported as low, probably less than 5 tonnes. An indicative
fabrication estimate for 2001 is 35 tonnes of fine gold. This would equate to about 40 tonnes by gross weight of carat gold
coins.
The quantity of coins fabricated for corporate purposes nationwide may exceed 10 tonnes. From the fabricator perspective,
this would normally include not only tailor-made coins ordered by corporate companies but also tailor-made branded coins
for jewellery retailers that may sell them to both corporate companies and the public.
Some Indian analysts believe that coin fabrication for corporate and private use may have been 50 tonnes, perhaps as high
as 70 tonnes, in 2001. This may be the case but, when GIR visited major coin fabrication centres in the north, notably New
Delhi, Meerut and Agra, gold coin output appeared to be low (while silver coin fabrication was extremely high). In addition,
the bulk of small fabricators appear to fabricate less than 5 kg annually. Some large refiners also tend to include in their
estimates minted coins and bars that are bought, or swapped for scrap, by jewellery retailers and then melted down for
jewellery fabrication purposes.
While the quantity of coins fabricated nationally for corporate and private use is an unresolved issue, the important point is
that coin fabrication is substantial and overall demand, according to the trade, has grown at both corporate and private
levels over the past 3-4 years, although there is variation among regions and States.
EXAMPLES OF STANDARD MINTED COIN WEIGHTS
Weights Mumbai Mumbai Mumbai Mumbai Ahmedabad Bangalore Cochin
in grammes National Parekh Narrondass National Gujarat Bangalore Chemmanur
Gold Platinum Manordass India Gold Refinery Gold
Refinery Bullion Centre Refinery
100 100 - 100 100 - 100 100
50 50 50 50 50 - 50 50
25 - 25 25 25 - - -
20 20 20 - 20 - - -
10 10 10 10 10 10 10 10
8 * - - - - - 8 8
5 5 5 5 5 5 5 5
4 * - - - - - 4 4
2.5 - - - - 2.5 - 2.5
2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1
0.5 - - 0.5 0.5 - 0.5 -
Standard purity 995 999 995 995 999 999 999
* 8 g and 4 g coins are normally K22.
Most refineries will also tailor-make coins and bars to any specified weight, purity, caratage and design.
Rectangular bars
National Refinery None.
Parekh Platinum 100 g, 50 g.
Narrondass Manordass In all weights.
National India Bullion In all weights.
Gujarat Gold Centre 50 g, 20 g, 10 tola, 5 tola, 1 tola.
Bangalore Refinery In all weights, except 8 g and 4 g.
Chemmanur Refinery In all weights, except 8 g and 4 g.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET