Investment in gold ... Rs.55,90,000 crores !!!! Is it reason for high interest rate, low growth rate, and high inflation?

IMP-ost : 19th Nov, 2012

www.i-securesolutions.in : Investment in gold... share your view

The Rs 55,80,000 crore question : Government should consider financial schemes to replace gold holdings

Blame it on tradition or on its popularity as a hedge against inflation, but Indians are diverting a large portion of their savings to gold.


This has reduced their financial resources for investment and added to the country’s problems, including twin deficit woes. It is also a major reason for high interest rates, low growth rate and high inflation.

In 1933, the then US president, Franklin Roosevelt, issued an order asking citizens to return gold held by them in a bid to tide over a crisis. Offenders were handed out a fine of $10,000 or 10 years in jail. The rest is history.

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http://www.financialexpress.com/news/the-rs-5580000-crore-question/1033378/0