MrChakrabarty has been harping on this issue for quite some time
perhaps to dissuade the people from investing in gold and reducing the
demand for gold.Risks are there in any investment is a basic
principle and the risks in bank savings are more now a days thanks to
erosion of value due to unabated inflation which the authorities fail to
even recognise. Black Money holders save in gold for certain obvious
advantages where as poor people invest in gold for sentimental reasons
and to hedge against inflation as well.They have no backing or mindset
for speculation.If interest rate offered is a bit high and covers
inflation,people will come back to banks. Banks offer higher rate of
interest to high net worth individuals who accumulate both gold and
savings.Compared to any other investment,gold is the safest as on today
which cannot be argued away just like that Authorities in power have to
have an understanding of the over all economic situation before they
make such such statements frequently.
Dr.T.V.Gopalakrishnan
( This comment appeared in Business line dated 6/2/13 in response to an article Risk in investment in Gold has heightened).
Dr.T.V.Gopalakrishnan
( This comment appeared in Business line dated 6/2/13 in response to an article Risk in investment in Gold has heightened).