Narendra Modi’s efforts to curb gold imports to reduce India’s import bill runs into an incentive problem, where a weakening currency makes gold more attractive as a store of value. As the rupee weakens amid the oil price shock, it could face further effects from households shifting away from rupee-denominated savings, especially considering gold’s historical status as a financial safety net for families in India.
Man-Flayer on
No one is going to.
Messyfingers on
It seems like India just really loves gold in all forms on a cultural level. Trying to get people to not also consume it as an investment vehicle seems like a hell of an uphill battle.
They buy nearly as much gold as China, with a fraction of the purchasing power. As Indians get wealthier and gold prices continue climbing, where wealth in gold keeps growing in value, it feels like there’s a positive feedback loop that would take some kind of huge cultural shift to change.
HoveringMango on
It’s the safest investment lol. When I got my first job it was like 40k / 10gm and now its 150k / 10gm.
4 Comments
Submission statement:
Narendra Modi’s efforts to curb gold imports to reduce India’s import bill runs into an incentive problem, where a weakening currency makes gold more attractive as a store of value. As the rupee weakens amid the oil price shock, it could face further effects from households shifting away from rupee-denominated savings, especially considering gold’s historical status as a financial safety net for families in India.
No one is going to.
It seems like India just really loves gold in all forms on a cultural level. Trying to get people to not also consume it as an investment vehicle seems like a hell of an uphill battle.
They buy nearly as much gold as China, with a fraction of the purchasing power. As Indians get wealthier and gold prices continue climbing, where wealth in gold keeps growing in value, it feels like there’s a positive feedback loop that would take some kind of huge cultural shift to change.
It’s the safest investment lol. When I got my first job it was like 40k / 10gm and now its 150k / 10gm.