The Government is solely responsible for the mad craze for gold in India (Business Line,
June 8) and now the demand is price inelastic. Government’s failure to
contain inflation, corruption and black money have diverted people’s
attention to gold.
Greed has overtaken the market and pricing of products has no relationship to demand and supply.
Corruption is rampant even in villages and small suburbs, and irrespective of status and educational background.
People make piles of money in blackand a large segment goes towards gold consumption.
Further, scams and frauds, the steep fall of the stock market, the
absence of financial instruments with safety features and positive
returns covering inflation for the public to save have made people
invest in gold.
The Government should curb the demand before it reaches dangerous levels.
Dr.T.V.Gopalakrishnan
(This letter appeared in Business line dated 10/6/13)
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