As most of you know, India is the biggest buyer of good in the world. Even middle to lower income families generally own good quantities of gold generally in the form of jewellery. It is seldom sold except in the case of emergencies and is passed on through the generations as 'Women's Wealth'.
People bought gold in unprecedented volumes during Akshaya Tritiya this past Monday.
The RBI has placed a restriction on importing gold because of current account deficits, only making exceptions for requirement of jewellers.
Forecast is not good. People who are in gold for quick returns are being advised to sell now to avoid taking a bigger hit.
The majority of people here do not fall into that category however so its a good time to be a jeweller as sales are skyrocketing.
Price has gone below INR 27,000/10 gm
Are people coming to the conclusion that gold will not have value beyond functional uses in the future? Is this assumption correct? Is this an endorsement of the stability of currencies of large economies?
The current climate suggests 'Yes' to all the above.
I wish I had Ron Paul on speed dial....=(
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