Indian Central banks buys gold for no reasonSubmitted by Canada on Mon, 11/16/2009 - 22:01
"To the outside world, it signals a show of strength and display of quiet confidence," said Himadri Bhattacharya, executive vice-president at Tata Capital in Mumbai, India.
But the former RBI official doesn't believe the gold purchase, worth US$6.7 billion, was the outcome of any strategic thinking or vision on the part of the authorities.
"It just happened," said Bhattacharya, who has done extensive research on gold for the World Gold Council.
There you have it: The authorities behind the central bank of India just bought $6.7 billion dollars worth of gold for no reason. It was just random. Right.