Does gold retailing make sense, especially with most banks already doing it?
The innovation in this business was to introduce 0.5 gm and 1 gm gold coins. Customers buy them easily because a half gram gold coin costs just Rs 500-600, while a 1 gm gold coin costs just Rs 1,000-1,100. There is huge demand for these coins in the gifting segment. Every week we get three or four large orders from corporates. A lot of banks have also got into this business. But the disadvantage with banks is that they do not buy back gold coins, whereas we do.
