Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

COIN FABRICATORS
Coins are minted by organised refiners and more than 1,000 other coin fabricators. Many jewellery
fabricators also have a capacity to mint coins.
Although the fabrication of coins and minted bars was prohibited for 27 years (1963 - 1990), existing stocks within India
of legal tender gold coins, dated 1962 and earlier (mainly British sovereigns), could be owned over this period.
In India, the word “coin” is commonly used to describe a round medallion bought for savings or gift purposes. It does
not imply legal tender status. The category includes minted medallions and quasi-coins in rectangular, oval and other
shapes. It also includes crude “duplicate” sovereigns in a variety of weights (from 8 g to 1 g), also known as “guineas”.
Coins are bought for 3 main purposes: family gifts, corporate gifts and personal savings. More than 50% of coins are
expected to be exchanged for jewellery over time.
Most coins are sold by jewellery retailers. Demand tends to be seasonal, sold mainly during the marriage seasons and
at festivals, especially around the time of Diwali (October – November).
More than 35 tonnes of fine gold may have been used to fabricate coins in 2001.
NUMBER AND SIZE
Anecdotal evidence indicates that there are more than 1,000 coin fabrication units. A few mint more than
500 kg, but most mint less than 5 kg, and some less than 1 kg of coins, annually.
In the south, for example, trade estimates indicate that there are more than 50 units in the cities of Chennai, Coimbatore,
Bangalore and Hyderabad. For the State of Kerala, the estimate was 100.
Mumbai is the most important fabrication centre. Its units dominate the minting of coins for corporate companies
nationwide.
Few units rely on gold coin fabrication as their sole source of income. Many also mint large quantities of silver coins. Most
mint coins sporadically according to seasonal demand.
TECHNICAL FEATURES
Purities
Although organised refiners adopt standard purities of 995 or 999, most coins are 916.6 (K22). The purity can also be
specified by the retailer or corporate entity ordering the coins (e.g. K23, K21, K20 and K18).
Weights
Most organised refiners produce coins ranging from 0.5 g to 100 g. The most popular weights are 10 g and less.
In the south especially, many fabricators produce a standard range of small coins: 1 g, 2 g, 4 g and 8 g.
Many NRI’s are also reported to import foreign coins and minted bars from the Middle East and elsewhere, usually for
conversion into jewellery.
Decoration
Coins are available in a plethora of different designs. Corporate companies and jewellery retailers often request that their
corporate logo be featured on the obverse with a standard or tailormade design on the reverse.
Many coins depict a Hindu God or Goddess or religious motif on the reverse. Some units report that 50% and more of their
coins would be of this kind.
Crude “duplicate” sovereigns normally depict Queen Victoria, Edward VII or George V. They sometimes also incorporate the
initials of the fabrication unit.
CONSUMER MOTIVATION
Coins are bought for 3 main purposes: family gifts, corporate gifts and personal savings.
All retailers stress that most coins tend to be exchanged over time for jewellery.
Family gifts
Popular during the marriage season, for other family events, and at the time of festivals. Many large urban retailers observe
an increase in demand in recent years.
82
AN INTRODUCTION TO THE INDIAN GOLD MARKET