Saturday, August 17, 2013

Why Indians are craving for gold?

India gold imports hit a record 162 metric tons in May as global prices fell, prompting government to impose a duty increase to 8 percent. The government wants to hold bullion imports this year to "well below" last year's figure of 845 metric tons. Indian Prime Minister Singh: "We seem to be investing a lot in unproductive assets." The real problem behind the appetite for gold is India's high inflation, running at 6% currently, and a depreciating Rupee. A slowing economy makes stock investment riskier. Gold becomes the asset of choice for saving.

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