British Royal Mint makes first sovereign gold coins in India in century

Britain's Royal Mint has started to manufacture gold sovereign coins in India [ Images ] for the first time in almost 100 years, it said on Monday.

Indian residents have been unable to buy commemorative sovereigns since 1918, when the Royal Mint operated a branch in the country, producing 1.3 million coins in a single year.

The first production run will be for 50,000 pieces and will be available in the market immediately, the Royal Mint said in a statement that coincided with British Prime Minister David Cameron's [ Images ] visit to India.

The commemorative sovereigns will be produced by Indian gold producer MMTC-PAMP using tools and techniques developed by the Royal Mint in its South Wales facility.

India is the largest consumer of gold, with gold coins playing a key role in wedding ceremonies and festival celebrations throughout the year.

The country's gold medal market is estimated at around 80 tonnes a year by consultancy Thomson Reuters GFMS.