This statement by the Dy Governor of RBI is just to confuse the
masses. Investment in gold is both for speculation and hedging against
inflation. Those who have abundant black money and are insensitive to
inflationary pressures invest in Gold to speculate, but those whose
earnings and savings potential are limited go in for investment in gold
just to hedge against inflation as the real rate of interest is
negative if they save in Banks or other savings instruments.This sement
of population consists of people from middle middle class and upper
middle class. Poor class people have no money either to eat or invest
in gold. This category has been completely getting ignored by the
authorities and this category gets worst hit by persisting inflation.
Persons in authorities instead of taking measures to contain
speculative investments are talking something different to hide their
failures to contain inflation and trying to confuse the people.This is
not desirable.
Dr.T.V.gopalakrishnan
( This comment in response to the statement by the Dy Governor of RBI that investments in gold not hedge against inflation appeared in Business Line dated 21/1/13)
( This comment in response to the statement by the Dy Governor of RBI that investments in gold not hedge against inflation appeared in Business Line dated 21/1/13)