Govt and Gold

The Govt is solely responsible for the mad craze for gold in India.The reasons can be found in Govt's wrong policies and inaction in respect of vital economic policies badly needed by the economy. Failure of the Govt to contain inflation and black money is the major cause for diverting attention of the people to gold.Added to this Govt's policies to import gold to satisfy the gold bullion and jewellery merchants and sell gold through post offices and banks have made Gold a most possessive item at any cost by those who have surplus. Further, the scams and frauds  now and then getting reported in the financial system, the steep fall of stock market, absence of financial instruments with safety features and positive returns covering inflation for public to save have attracted people to invest in Gold.The Govt is to be squarely blamed for the mess that it created in gold market.

Dr.T.V.Gopalakrishnan

( This comment is in response to the article poke me: Govt is responsible for India's craze for gold that appeared in ET dated 5/6/13)