Gold coins are intrinsic to gold demand, not just in India, but across the world. In most countries that have an affinity with gold however, that relationship is symbolised by a sovereign gold coin. These coins foster domestic demand, but they are also widely exported, encouraging economic growth and driving brand awareness overseas.#
Gold occupies a special place in Indian society. Long revered as an asset to be prized above all others, gold is interwoven into the fabric of Indian culture and tradition. More than perhaps in any other country, gold is viewed as both an adornment and an investment, treasured for its aesthetic beauty and appreciated as a store of wealth. However, India was missing a branded coin until Prime Minister Narendra Modi launched the Indian Gold Coin on 5 November 2015. This launch was highly significant in the evolution of the Indian gold industry.
The World Gold Council commissioned a study to assess consumer attitudes towards branded coins; the price at which consumers would be prepared to buy branded coins and potential demand in the urban market. The World Gold Council’s research took place in 2015, prior to the release of the Indian Gold Coin, which is the first branded gold coin to be introduced in India.
The results produced a number of key findings:
There is a clear preference for branded over unbranded coins for every type of consumer.
- Banks and branded jewellers are the preferred channels. to purchase coins.
- The most appealing characteristics of the Indian Gold Coin are its guaranteed purity, its standard features, Government backing and the Make in India imprimatur.
- The two sections of the population for whom the Indian Gold Coin has most appeal are women and experienced gold investors.