Gold Schemes Are Impractical And Unworkable. Amnesty Would Have Been Better and Here’s Why

Buying gold has been a tradition in India not for decades but centuries. Wearing gold jewelry and gifting during marriages is a part of Indian tradition. Over the last 10-15 years, there has also been a huge increase in buying of gold in the form of coins and bars for two reasons. The first is that these are being accumulated for future use as parents use their current cash flows to accumulate gold for their children’s marriages.

The second has been the investment buying which has been a result of the secular uptrend in the value of gold over the last decade where gold prices went up despite the crash in equities, real estate etc. till 3 years back after which gold has fallen or stagnated. The total value of gold at the current prices will be in a range of $ 800 billion to $ 1 Trillion.