Gold shines in India

One insurance and/or safety net that most (almost all I would guess) Indian households have.

India has seen difficult economic times for centuries now. Whether it was due to forcible taking away the acquisitions or famines. This led to a situation where households started building own safety nets and women took a significant charge of the same. Socially as well, women have been kept safer from external shocks.

Gold became the natural choice. Bit by bit. Gram by gram.

It is estimated Indian households have about 25,000 tonnes (yes, tonnes) valued at Rs 12,50,00,00,00,00,000 (Rupees twelve lakh fifty thousand crores) or USD 167 billions. The largest stockpile in the world amongst households.

Even RBI holds 633 tonnes of gold (more than double of UK central bank holdings).

In the difficult economic times due to pandemic, it is this safety net (or insurance) that will be the saviour for many a families.

#gold #wealth #safetynet #indianmaze #savings

205-1-20

Comments

Unsaid speaks louder than words

The message was clear. US is facing a financial crisis. Americans need to contribute to get out of "conveniences". But the statements like "it will get worse before it gets better" without a timeline and references to a time of slavery etc are not comforting. American era may be ending faster than anticipated. Obama's inaugration speech was truly indicative of a man under pressure from the start. As any sportsman will confirm, it's all in the mind and followers just follow the leader and Obama has not set the bar high at all. My view is that it is heading south fast...... Contrast this with the situation in India. All that leaders are talking about is security and resolve to protect Indian at ANY COST. Economic issues are tackled with a view, yes it is a slowdown but we will still beONE OF THE BEST IN THE WORLD. No talk of worsening things, less spending by government. News headlines are all talking about shrinking bottomlines for profit and NOT LOSS issues....

New addiction

How reality loses to momentum?

Truth prevails is an old adage that seems to be losing its relevance in the current sentiments. Still I am confident that "Truth shall prevail". Hopefully, sooner than later. The case in point is the investor confidence in the stock market. Indian markets are aping the performance of the stock markets of developed world. In fact, the possible loss in indices is reasonably predictable in the last few weeks based on what happened on the previous day in Europe and US. Are the situations similar? Are Indian businesses facing the same situation as companies in western world? Are Indian corporate giants going bust like crackers in Diwali? Have companies of great repute and history in India have filed for bankruptcy? Has any company in India reported loss of sales (top line) in double digits and evaporation of profits? Slowdown yes. How bad is India? Is it comparable to West? It has baffled me as to how convenient has it been to be infected with "western sentiments" virus ...

IndianMaze

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