Post offices in the state are expecting a massive rush for gold coins on auspicious Pushyanakshatra day (Tuesday) because of the 7% discount announced by the postal department. India Post expects almost 100% growth in gold coin sales this festive season, not only in Ahmedabad but in other districts of Gujarat as well.
Post offices are offering a flat 7% discount on gold prices as compared to prevailing prices in the retail market. Currently, the discount amount comes to around Rs100 to Rs125 on 0.5 gram coins and Rs200 to Rs250 on 1 gram coins.
Banks usually do not sell gold coins or bars in the 0.5 gram and 1 gram denomination. The demand for these coins and bars are the highest in post offices in Gujarat.
As the demand for gold is low these days, India Post along with World Gold Council and Reliance Money launched the straight discount offer on gold coins and bars in the country a fortnight back.
In the last two months, post offices in Gujarat have already sold 2.5 kg gold worth of Rs78 lakh. Gold coins are being sold through 10 post offices in Ahmedabad which is the largest gold market of the state. In the last two months, the city has witnessed sale of over 600 gram gold worth of Rs19.5 lakh.
This year, due to the rise in gold prices, the demand for the precious metal is down. Import of gold in India was down almost 40% till the end of September 2012. Despite the lack in demand, post offices in Gujarat are expecting 100% growth in sale of coins.
“In 2011-12, we sold around 25 kg of gold in Gujarat. In the current financial year [till the end of October] we have sold more than 26 kg of gold. Looking at this demand, we are expecting the growth to double this festive season,” said a spokesperson of India Post, Gujarat region.
In Ahmedabad, 10 post offices — those in Ambawadi, Memnagar, Naranpura, Shahibaug, Paldi, Ellisbridge, Maninagar, GPO, Rewadibazar and Navrangpura — will sell gold coins this festive season.
“In Gujarat, of the total sales, the maximum demand is for 0.5 gram and 1 gram gold coins. With the masses in mind, we are offering 99.9% pure, Swiss-manufactured 24 carat gold coins in the denominations of half-a-gram, one gram, five gram, eight gram, 10 gram, 20 gram and 50 gram,” said an official.