......The Reserve Bank of India (RBI) recently considered clamping down on gold coin sales by banks.
Edel Tully, precious metals strategist at UBS, said that ”coin demand is the smallest element in the demand pack,” and what is important is the message that will be transmitted if the RBI takes the action it has suggested; a move to stop banks from selling gold coins would signal that 2012 gold imports are still too high......
1 comment:
We should be happy, if domestic gold demand for jewllery and dowry-related purposes come down. More importantly the efforts initiated by RBI to reduce import of gold should be vigorously pursued. The committee set up to go into this issue should also look at options to put domestic stock of gold to productive use. Probably appropriate incentives and disincentives for bringing idle stock of gold into mainstream and avoiding misuse and hoarding need to be thought of.
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