Golden escape route

.....Although it is true that a third of the global demand for gold is from India, the extraordinary penchant for gold (in preference to other forms of savings) wasn’t always there. In 2001-02, for instance, the fresh money that went into small savings avenues was more than three times the value of gold imports; now gold pips small savings. Shares and mutual funds too have been preferred options in some past years. The dramatic increase in the preference for gold is therefore new. And the former Reserve Bank governor, Y V Reddy, put his finger on the problem last week when he said at a lecture in New Delhi that the system has simply not given savers a fair deal.........

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