Idle gold can be used to help economy

Sunil Pradhan
Monday, 9 December 2019

As per the World Gold Council, India is one of the largest markets for gold, with consumption in 2019 likely to be 750 to 850 tonnes. Founder Director, Vighnaharta Gold Ltd, Mahendra Luniya, stresses on the utilisation of idle gold which can help Indian economy. He tells Sunil Pradhan how Vighnaharta Gold, an online platform for gold booking and depositing, is helping its customers.

What prompted you to start the online gold trading platform?
I was working in the financial sector and trading. During my study, I found that Indians are large consumers of gold and the Indian economy suffers from massive Current Account Deficit (CAD) despite physical gold worth more than Rs 72 lakh-crore lying idle in the country. It was then I thought of utilising the idle gold for the benefit of people and also providing a digital and convenient platform for people. It is time that people change their traditional mindset about gold. We have tie-ups with jewellers who help us in dealing with the physical gold available with the customers.

What are the offerings of Vighnaharta Gold and how is it a win-win situation for the company and the customers?
We offer gold deposit and gold booking schemes to our customers who are present across the country and can deal with us through digital modes. The gold booking schemes help the customer to lock the gold price while booking and the payment can be made through easy low-cost EMI schemes. At the end of the scheme, we deliver the best quality gold to the customer from his preferred vendor. Similarly, in gold deposit schemes customers can earn on idle gold. We allow individuals to deposit their 24-karat (99.5 purity) gold to us that is secured under a guarantee by nationalized banks. In this, an individual gets an option to either take their gold or the value of gold in currency on the date of maturity. The gold booking scheme helps a customer to lock the price of gold and so he need not worry about fluctuating prices of gold. Similarly, in the gold deposit scheme, we assure a 5 per cent appreciation on gold per annum.

How are you using technology to help customers through the deal?
A customer can manage all his transactions through online mode as we have a website and mobile application, ‘Vgold’ which helps customers track their business with us. A customer can use the mobile wallet on our mobile application to trade in gold. We also have a membership card scheme which gets attractive discounts at various outlets for our customers. Similarly, a customer is also eligible for discount up to 75% on gold ornament making charges and can avail discounts on other lifestyle brands, if he has a Vighnaharta Gold Lifetime membership card. We have also decided not to deal in cash and so all transactions are digital and on record.

What is your current customer base?
Currently we have 4,500 customers with us and about 6,000 people are members of Vighnaharta Gold. We have delivered about 52 kg of gold till date to our customers.

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