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Even as the Union government plans a scheme to monetise the gold with households and temples, private schemes flourish in this regard.
Large-size jewellers are offering Rs 1,100 a kg daily for gold deposited with them. This is nearly a 15 per cent return on an annualised basis. Jewellers find it pays, since banks are currently treating them as risky borrowers and charging higher rates.
Gold harvesting schemes, earlier a big success, have become less attractive after the new Companies Act. In such a scenario, informal gold deposit schemes have found favour. A person familiar with these said when gold was around Rs 18,000 per 10g, the return was Rs 500 a day per kg of gold. It is now Rs 1,100, with gold prices around Rs 27,000 per 10g.
Some large south-based jewellers accept gold as deposits; so do some based in this city. Some large temples are also said to have deposited gold with jewellers. The minimum quantity accepted under this scheme is a kilo and normally in the form of bars. People usually don’t keep jewellery under such arrangements. Such schemes are offered to only select customers.
The firms make no differentiation between official and unofficial gold. As most such transactions are based on trust, these hardly come on the books and, hence, are likely to escape the income tax authorities.
A source said some jewellers accept gold as deposits and give returns in the form of gold a year later. Under this scheme, jewellers accept a minimum of 100g, in the form of coins or bars. They give in writing that the gold has been received; this is shown as an advance receipt for converting into jewellery. At the end of the tenure, the gold is returned with interest, also in the form of gold. It can be as much as 10g yearly for every 100g deposited.
Such informal schemes show gold monetisation schemes can succeed, said a veteran bullion analyst. However, “depositors should be given the confidence that the tax authorities will not harass them for giving gold as a deposit”.
Large-size jewellers are offering Rs 1,100 a kg daily for gold deposited with them. This is nearly a 15 per cent return on an annualised basis. Jewellers find it pays, since banks are currently treating them as risky borrowers and charging higher rates.
Gold harvesting schemes, earlier a big success, have become less attractive after the new Companies Act. In such a scenario, informal gold deposit schemes have found favour. A person familiar with these said when gold was around Rs 18,000 per 10g, the return was Rs 500 a day per kg of gold. It is now Rs 1,100, with gold prices around Rs 27,000 per 10g.
| SHINING BRIGHT |
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Some large south-based jewellers accept gold as deposits; so do some based in this city. Some large temples are also said to have deposited gold with jewellers. The minimum quantity accepted under this scheme is a kilo and normally in the form of bars. People usually don’t keep jewellery under such arrangements. Such schemes are offered to only select customers.
The firms make no differentiation between official and unofficial gold. As most such transactions are based on trust, these hardly come on the books and, hence, are likely to escape the income tax authorities.
A source said some jewellers accept gold as deposits and give returns in the form of gold a year later. Under this scheme, jewellers accept a minimum of 100g, in the form of coins or bars. They give in writing that the gold has been received; this is shown as an advance receipt for converting into jewellery. At the end of the tenure, the gold is returned with interest, also in the form of gold. It can be as much as 10g yearly for every 100g deposited.
Such informal schemes show gold monetisation schemes can succeed, said a veteran bullion analyst. However, “depositors should be given the confidence that the tax authorities will not harass them for giving gold as a deposit”.
