M A I N   N E W S

Mad rush for gold in post offices
Tribune News Service

All that glitters is gold The World Gold Council (WGC) expects 2010 imports to breach the 800 tonne-mark, surpassing the record 770 tonnes of imports seen in 2007.

New Delhi, November 6
There has been a gold rush in the country over the past few years and the Indian post offices have not been left out of the growing craze for the yellow metal by the Indians.

Figures released by the Ministry of Telecommunications point out that India's Postal Service has sold more than a half tonne of gold coins in the last two years, which clearly reflects the mood of the Indians of accepting the yellow metal as a form of investment.

In India, which is the largest consumer of the gold in the world, the yellow metal is traditionally sold in the form of jewellery.

However, the increasing price of gold also reflects that the 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 across the country, the ministry said.

"India Post is overwhelmed by the response received from the public," the ministry said.

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.

Gold is a regulated sector in India and the federal government has allowed 23 state and private banks to trade in bullion at the wholesale and retail levels.

Banks, jewellers and post offices also sell coins and bars through their retail outlets.