MMTC to auction gold collected under Gold Monetization Scheme

Gold investors could well be in for another opportunity to invest, as MMTC plans to hold an e-auction of gold collected under the Gold Monetization Scheme, reports say. The Scheme was launched by the Indian government in a move to mobilize idle gold lying in households, reduce the country’s dependence on gold imports and thereby reduce the CAD.

A proposal to auction the gold was taken up recently by the concerned ministries. Until now, around 2.8 tonnes of gold have so far been collected from 105 depositors, noted by the Finance Ministry, reports say.

MMTC intends to auction the gold in lots of gold bars of 5kg each, as per reports. This would be the minimum size of the lots as per the proposal, and multiple lots could be taken up. The gold price would be maintained at the average level taking into account the opening and closing price of the previous day, as per reports.