Indian gold loan company launches sixth recycling centre

NEW DELHI (Scrap Monster): In a bid to take advantage of the gold monetization scheme, Muthoot Exim-the precious metals arm of Muthoot Pappachen Group (MPG) has announced the launch of a new gold recycling centre. The sixth ‘Muthoot Gold Point’ was launched yesterday at Ahmedabad. The company presently operates gold recycling centres in Coimbatore, Chennai, Delhi, Mumbai and Kolkata.

The company had opened its first gold recycling centre at Coimbatore in March last year. The centre has collected nearly 10 kilograms of old gold from around 200 customers within two months of its opening. The huge success of this centre had led to the opening of more such centres across the country.

The “Gold Point’ model intends to collect old gold from customers. The centers are well-equipped with state-of-the-art X-ray gold purity tester. The customer will be paid the value of gold as per market price after deducting 2% on purity as administrative charges. The collected gold will then be melted in the presence of customer and later supplied to organized jewelers. All normal transactions require the customer to fill out a detailed Know Your Customer (KYC) form. Also, transactions exceeding 2 lakhs will require PAN card details.

According to Keyur Shah, CEO, Precious Metals Business of MPG, the company has ambitious plans to open at least 10 more centres during the next fiscal, including locations in Bengaluru, Ludhiana, Lucknow and Madurai. It intends to recycle 600 kilograms of gold by March next year and 1.5 tonnes by March 2018. The Gold Point centres will serve to provide standardized, transparent and scientific platform for customers who wish to sell their gold.