The English Guinea — the first machine-struck gold coin in England that was the king of currencies there and in many parts of the world from the late 17th century to the early 19th century — is making a comeback in India. The Royal Mint of UK has licensed a local firm to produce the gold coins at a refinery near Delhi.
The new Royal Mint 2013 sovereigns will be made by MMTC-PAMP — a joint venture between public sector MMTC and majority shareholder Swiss manufacturer PAMP. It will feature the made-in-India mark and will be distributed across India through bullion traders said persons close to the development.
The 8-gram guinea that will be manufactured in India will be priced on the basis of bullion rates. Gold traders said they expect the price of a made-in-India guinea to be around Rs 30,000 per coin, given current gold rates.
The first ‘made-in-India’ guinea will be presented by British Prime Minister David Cameron to Prime Minister Manmohan Singh during the former’s Delhi visit starting February 19. Rajesh Khosla, MD of MMTC-PAMP, an Indo-Swiss joint venture, declined comment.
MMTC PAMP’s Sohna unit can mint 2.5 million pieces every year. The ‘made-in-India’ guinea, said people close to the business decision, is aimed at satisfying a large domestic appetite for gold coins, a part of the larger demand for gold. Some bullion traders sell gold in 10-gram coins called ‘ginnis’.
“There is a lot of demand for old guinea coins in India. It is not only a collectors’ item, but people also buy coins for gifting,” Dau Lal Johri, an Indore-based coins collector, said. The original UK guinea is rare and sold at a premium.
“However, there are imitations easily available in the trade, which are called ‘Dalda Guinea’ and mostly used for gifting purposes in weddings and festivals,” says Girish Vira, founder of Mumbai-based coins auction house Oswal Antiques. “Many business families in the country own the rare original guinea coins,” he said.