© GRAPHIC NEWS
© GRAPHIC NEWS
© GRAPHIC NEWS
BUSINESS
India’s gold market
December 14, 2016 - Gold imports are on track to drop to their lowest in five years, driven by higher prices, an excise tax and the government’s ban on high-value banknotes. “Black money is used to buy one-third of India’s gold.”
Indians’ great love for gold has created severe and ongoing economic issues for the nation. Australian investment bank Macquarie has estimated that 78% of India’s household savings are held in gold.
Building up savings in gold rather than deposits in effect means that India has a dual currency. Because the savings do not increase the available funds for lending within the banking system, this creates a permanent drag on India’s growth.