Gold Auction by MMTC Seeks Final Government Nod

SEATTLE (Scrap Monster): The state-owned trading giant Metals and Minerals Trading Corporation of India (MMTC) has sought government nod to auction additional 5 tonnes of gold collected under the Gold Monetization Scheme (GMS). It must be noted that MMTC had successfully auctioned 8 tonnes of gold in the first phase.

According to a senior official belonging to MMTC, the first tranche of gold auction witnessed good response. The auction was noted for increased participation by traders and jewelers. The total sale price of gold exceeded the calculations based on prevailing international gold prices, he said.

The GMS mobilized gold totaling nearly 21 tonnes, much lower than government expectations. The retail participation remained pretty poor, whereas most of the contributions came from temples and trusts. Incidentally, Indian households are estimated to have gold stocks in excess of 20,000 tons. As per the agreement between MMTC and the Indian government, the former was assigned to convert short term gold deposits into gold coins, which were sold through designated banks and post offices across the country. Also, MMTC was entrusted to auction the gold totaling around 12 tonnes, which were accepted as part of long-term deposits under the GMS Scheme.