Gold coin sales boom for India’s post office

Monday, 8 November 2010 04:22 - - {{hitsCtrl.values.hits}}

Mumbai (Reuters): India’s Postal Service has sold more than a half-tonne of gold coins in the last two years, a sign the yellow metal is gaining acceptance as a form of investment in the world’s biggest gold-consuming nation.

India is traditionally a buyer of gold jewellery -- a common gift during religious events and weddings -- but consumers are becoming increasingly aware of the benefits of holding gold in other forms like coins, bars, and via exchange traded funds.

The sale of gold coins via the post office began in October 2008, and the coins are now available in 700 post offices throughout the country, the Ministry of Communications and Telecommunications said.

“India Post is overwhelmed by the response received from the public,” the ministry said in a statement released on Thursday.

The country is in the peak of the festival season, when consumers buy gold to invoke prosperity. Gold sales have rebounded with a record world price after a sharp decline last year, as the worst drought in nearly four decades dented sales. The World Gold Council (WGC) expects 2010 imports to breach the 800 tonne-mark, surpassing the record 770 tonnes of imports seen in 2007.