Indians dont like to sell gold,they would not like to melt it either, so considering the sentiments of people , govt can consider the concept of GOLD depositories where in the public deposit their gold, get valuations done,and for this valuation amount public can be given a Over Draft Account.so the gold stays in the demat and equivalent amount of cash can be taken after haircut at subsidised-rates,when ever they would like to take the gold they can clear the overdraft and take gold back from d

Buying Gold in India is primarily for Security and Liquidity. Very few people buy gold as an invest. Monetising existing gold holding(Jewellery) is difficult because of 30% loss. Govt can consider issue of Gold bonds as Grams at nominal interest rates which can be exchanged with gold at any bank or Jeweller. Going forward people instead of buying physical gold now can buy these bonds and when they need physical gold just exchange it. It would be akin to gold coin but in paper form.

In the Indian commodity markets gold prices for MCX have become a benchmark for the bullion value chain participants. Hence, we urge upon the government to benchmark its gold bonds to MCX prices.

It is a very good initiative taken by Govt. of India. It is also a very innovative and supportive steps towards healthy economic growth of our Country, but I am very surprised that, why Govt. decided to not to take reference rate for Gold from ‘MCX’ (which is not only the largest Commodity Exchange in India but also created benchmark of Gold prices in India) along with other Exchanges.

Issuing gold bond is a good idea but bond liquidity in commodity exchanges & price determination need to go with Mcx,ncdex and large bullion & jewellery houses together.since all segment contribute in bullion segment in India.

The draft scheme aims to issue unhedged sovereign gold bonds worth 55 tonnes equivalent to ₹ 13500 crore . If gold price rises from its current level of $ 1180 per oz to $ 1920 at maturity which it actually did in September 2011 , the liability of Government will be higher at ₹22275 crores not counting the interest , resulting in a loss of ₹ 8775 crores for reducing gold imports by a measly 55 tonnes ! So the cost benefit trade off is overwhelmingly against putting taxpayers money at risk !

Analysis of failures of ETF Gold should be done in order to make the new proposed scheme a success

Gold imports last fiscal year were about 1332 tonnes , 332 tonnes more than in the previous year . This has happened , as I have explained in my Business standard article , because of RBI having rolled back the level playing field between gold and non gold but essential imports like coal and copper which contribute to real economic and jobs growth ! So RBI must restore level playing field by not allowing gold imports on consignment , unfixed price and metal loan basis as was done in 2012-13 !

My comments are in the following link

http://wap.business-standard.com/article/opinion/gold-and-budget-2015-16-how-we-can-and-cannot-reduce-gold-imports-115041700283_1.html

It is definitely a good idea to create a financial to purchasing physical Gold. price determination need to go with MCX. past several years MCX Gold price considered as reference price by bullion traders so Kindly Considered to MCX rate also. Instead of NCDEX.