The Hindu : Andhra Pradesh / Hyderabad News : WGC cashes in on yellow metal fever

Online edition of India's National Newspaper
Thursday, Dec 27, 2007
ePaper

Andhra Pradesh

Andhra Pradesh - Hyderabad

WGC cashes in on yellow metal fever

Special Correspondent

Gold marketing strategy to extend to rural pockets with micro-finance loan offer

HYDERABAD: ‘Old is gold,’ they say. ‘It’s a gold mine,’ so goes another adage in reference to fortune. Even opportunities are ‘golden’. These age-old sayings make it explicit that mankind is wedded to gold. Indian weddings are ‘studded’ with gold, irrespective of caste and creed.

You would be surprised to know that 70 per cent of 721- tonne gold sales (2006) in India – world’s highest consumer -- are propelled by weddings, according to World Gold Council. Jewellery constitutes 526 tonnes, while the remaining is in the form of bars and coins.

‘Akshaya Tritiya’, ‘Dhanteras’ and ‘Guru Pushya Nakshatra’, apart from weddings , are only reminders to purchasing gold. That the ‘Guru Pushya Nakshtatra’ is yet to catch up in South India is another story. WGC’s associate director Keyur Shah says, Most Indian women, well aware of gold prices don’t hesitate to bargain on ‘making’ charges. Wealth saved in the form of gold is considered not only auspicious, but safe too. In any Indian household, gold purchase never meets with opposition.

Repay in instalment

Exploiting this weakness (or strength), the WGC is proposing to encourage gold purchase by rural populace by extending loans through a couple of micro-finance institutions (MFIs) in the State in the next two months. The MFIs will offer loans for purchase of even small quantities of gold and allow repayment in small instalments.

The pilot project in Kerala in association with Muthoot-Pappachan evoked a wonderful response, said Keyur Shah here on Wednesday.

A SEBI report had noted that 10 per cent of Indian household savings were in gold.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh