How to convert e-gold into physical gold
Here are some steps involved in converting e-gold into physical
If you have invested in e-gold through NSEL (National Spot Exchange Ltd), then there is a procedure to convert those units into physical gold like gold coin or bars and take delivery of the same. The e-gold units held in demat form need to be transferred to the designated beneficiary account of NSEL. A beneficiary account is a demat account in the name of an individual (single or joint holding). It is similar to a bank account. This account is to be used by the account holder for holding and transacting in demat units in electronic form.
Here are some steps involved in converting e-gold into physical:
Submit DIS & SRF
You first need to surrender the e-gold units to the depository participant (DP). You have to submit a delivery instruction slip to the DP along with the surrender request form (SRF) - which is available on the NSEL website freely.
The DP will hand over the e-gold units to the NSEL based on DIS. The depository participant then attests the signature of the investor on the transfer request form (TRF) and handover the same to the investor along with the DIS acknowledgement. Remember to take an acknowledgement of the delivery instruction slip. The investor then submits DIS and SRF to NSEL specifying the center of his choice from where he intends to take delivery.
Charges to be paid
On receipt of the copy of DIS and SRF, NSEL would compute charges relating to making and packaging charges of coin/ bar, delivery charges, VAT (value added tax) and other dues (if any).
The Exchange will communicate the total amount due to the respective client through the email ID provided in the surrender request form. The investor will be required to deposit a cheque of requisite amount favouring "National Spot Exchange Ltd" with the vault. In case the amount payable on above account will be more than Rs. 50,000, the payment will be acceptable by demand draft.
The minimum quantity e-gold units can be converted into 1gm gold coin, and in denominations of 8gm, 10gm, 100gm and 1kg or in combinations of these multiples. 1 unit of e-gold is equivalent to 1gm of gold. General applicable charges are Rs. 200 for 8gm and 10gm, Rs. 100 for 100gm, and no charges if the weight goes up to 1kg of gold conversion.
When you opt for physical delivery against surrender of demat units, you will be required to pay VAT as per the current rate. However, for buying and selling of e-gold units and taking / giving delivery in demat form, you will not be required to pay any VAT, octroi or other taxes.
Physical gold is stored in vault
Equivalent physical gold is kept by NSEL in designated vault having purity of 995 and is fully insured. Delivery of physical gold will be offered in specified denominations and at particular locations only, where NSEL has made vaulting and delivery arrangements. Delivery of physical gold will be made at Ahmedabad, Mumbai, Delhi, Kolkata, Indore, Kanpur, Jaipur, Hyderabad, Cochin, Bangalore and Chennai. Investor has to intimate NSEL about his preferred choice of center in the delivery instruction slip from among the said centers.
The investor can lift the commodity from the designated vault after seven days and within 15 days from date of submission of the request. In case of non-lifting of the delivery within 15 days, the holder shall be liable to pay storage charges for the entire month. You should carry the DIS acknowledgement and original SRF along with the proof of identification.
Procedure for physical delivery of e-gold:
- Submit a delivery instruction slip to DP with the surrender request form
- DP transfers the e-gold units to the NSEL account based on DIS
- DP then attest the signature of the investor on the transfer request form (TRF) and handover the same to the investor along with the acknowledgement of DIS
- Investor then submits DIS & SRF to NSEL specifying the center from where he intends to take delivery
- NSEL computes charges relating to making & packaging charges, delivery charges, VAT and other dues
- NSEL communicates the total amount due to the investor through the Email ID provided in the SRF
- Investor is then required to make such payment through DD/Cheque in favour of "National Spot Exchange Ltd"
account and get 1 gram of gold free.
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Gold Quotes
Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium.
-Murray N. Rothbard
The history of fiat money is little more than a register of monetary follies and inflations. Our present age merely affords another entry in this dismal register.
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As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise.
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For more than two thousand years gold's natural qualities made it man's universal medium of exchange. In contrast to political money, gold is honest money that survived the ages and will live on long after the political fiats of today have gone the way of all paper.
-Hans F. Sennholz
When paper money systems begin to crack at the seams, the run to gold could be explosive.
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In a country whose currency is not convertible into gold, inflation leads to its continuous devaluation in terms of foreign currencies.
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Until government administrators can so identify the interests of government with those of the people and refrain from defrauding the masses through the device of currency depreciation for the sake of remaining in office, the wiser ones will prefer to keep as much of their wealth in the most stable and marketable forms possible - forms which only the precious metals provide.
-Elgin Groseclose
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