NRB starts selling gold coins from Sundhara
KATHMANDU:
The central bank is hoping to facilitate more gold coin buyers by extending bullion sales counters on the eve of festivities, while the local jewellers are facing an acute demand deficit due to recent bullion price volatility.
Despite the waning demand for bullion in the domestic market, Nepal Rastra Bank (NRB) has decided to extend the counter to sell gold and silver coins this Dashain.
Earlier, the Thapathali banking office used to sell the gold and silver coins of different denominations, since last week Nepal Rastra Bank (NRB) has started selling the gold and silver coins from its Mint Division in Sundhara.
“At present, the central bank is selling higher denominated gold coins that are already in the stock,” informed an official from NRB Currency Management Department that handle the currency and bullion management for the central bank.
The central bank, supposedly has stopped minting more gold coins in the recent times due to various reasons.
The gold and silver coins minted by the central bank are priced little higher than the coins sold by local jewellers for the guarantee of purity and due to its numismatic value. The numismatic value of coin refers to higher value than the face value on the coin due to historical value. The NRB logo in the central bank minted coins ensures that those coins will be valued more than the ordinary ones minted by local jewellers.
But the local jewellers are authorised to mint the gold and silver coins with Urdu impression only. “During wedding and festive seasons — especially during Laxmi Puja — the precious metal coins are highly demanded but, in the present price scenario, the transaction of the gold coins along with other jewellery has come down to nominal,” said president of Nepal Gold and Silver Dealers’ Association (Negosida) Tej Ratna Shakya.
“The local jewellery shops’ transaction has come down to 10 per cent of what it used to be in normal times as the consumers do not have the purchasing power,” he said, adding that people are approaching jewellery stores to sell coins rather than to buy.
The price of gold is fluctuating in the international market so badly that some of the jewellery stores have stopped purchasing gold from the customers from the fear of incurring loss.
As the world economic outlook is appearing to get gloomier due to sovereign debt situation of US and Euro zone, the investors have been flocking gold for being a safe haven investment option. The gold price have been roller coasting as the policy makers worldwide are trying various measures to stabilise their economies.
In the domestic market, the gold price that had soared as high as Rs 54,200 per tola (11.664 gram) on September 6 but retreated to hover around Rs 50,000.
Source: THT
The central bank is hoping to facilitate more gold coin buyers by extending bullion sales counters on the eve of festivities, while the local jewellers are facing an acute demand deficit due to recent bullion price volatility.
Despite the waning demand for bullion in the domestic market, Nepal Rastra Bank (NRB) has decided to extend the counter to sell gold and silver coins this Dashain.
Earlier, the Thapathali banking office used to sell the gold and silver coins of different denominations, since last week Nepal Rastra Bank (NRB) has started selling the gold and silver coins from its Mint Division in Sundhara.
“At present, the central bank is selling higher denominated gold coins that are already in the stock,” informed an official from NRB Currency Management Department that handle the currency and bullion management for the central bank.
The central bank, supposedly has stopped minting more gold coins in the recent times due to various reasons.
The gold and silver coins minted by the central bank are priced little higher than the coins sold by local jewellers for the guarantee of purity and due to its numismatic value. The numismatic value of coin refers to higher value than the face value on the coin due to historical value. The NRB logo in the central bank minted coins ensures that those coins will be valued more than the ordinary ones minted by local jewellers.
But the local jewellers are authorised to mint the gold and silver coins with Urdu impression only. “During wedding and festive seasons — especially during Laxmi Puja — the precious metal coins are highly demanded but, in the present price scenario, the transaction of the gold coins along with other jewellery has come down to nominal,” said president of Nepal Gold and Silver Dealers’ Association (Negosida) Tej Ratna Shakya.
“The local jewellery shops’ transaction has come down to 10 per cent of what it used to be in normal times as the consumers do not have the purchasing power,” he said, adding that people are approaching jewellery stores to sell coins rather than to buy.
The price of gold is fluctuating in the international market so badly that some of the jewellery stores have stopped purchasing gold from the customers from the fear of incurring loss.
As the world economic outlook is appearing to get gloomier due to sovereign debt situation of US and Euro zone, the investors have been flocking gold for being a safe haven investment option. The gold price have been roller coasting as the policy makers worldwide are trying various measures to stabilise their economies.
In the domestic market, the gold price that had soared as high as Rs 54,200 per tola (11.664 gram) on September 6 but retreated to hover around Rs 50,000.
Source: THT
