The article is well written and it offers a good suggestion to
encash gold by offering attractive financial instruments.This solution
is good to take care of the stocks already accumulated and scattered all
over the country estimated at a staggering 20000 tonnes or even more.
The practical approach to have credibility among stockists of gold who
include households, businessmen etc is to have a Gold Bank established
by the Government and the Reserve Bank jointly and mobilise the gold
against creation of deposits at some rates determined based on market
trend.The Gold being used as a medium of exchange should be declared as a
criminal offence and Government should be able to track these
transactions as is done in the case of Cash Transactions over Rs 10
lakhs as Suspicious transactions.The urgent need of the hour is to
curtail imports not only for the present and for the future as well and at
the same time utilise the gold resources domestically available for
domestic investment and development purposes.The craze for gold has to
come to an end and for that both economic and social approaches have to
be simultaneously attempted.If inflation is kept under control,and
proper financial literacy is imparted even among the best educated and
literates, the import of gold can be contained to a great extent in the long run.
(This comment is in response to an article Gold and the CAD that appeared in Business standard dated 23/7/13)
No comments:
Post a Comment