Why India’s Appetite for Gold Is Something to Worry About

[StingRoy]

I think one of the main reasons why Gold is not a good investment for an economy is that it is dead money.. in the sense that this money which is invested in gold is taken away from what would otherwise been an investment in a business or industry, thereby keeping the money circulating within the economy.

Remember the basic principle of economics of how to 'create' money. Keep it in circulation.

Instead in India, people are using gold as an effective means to 'store' their black money. Rarely do women ever sell gold in India.... just keep on adding to their stash and passing through the generations.

 

[Kinetic]

Always have to find something bad.... lol

I have seen many families including mine always buying golds. They always say 'gold is gold', you can sell it anytime, anywhere you want in case of future crisis but I never saw them selling even single piece. lol Thats what GoI also think may be. rofl

 

[alphamale]

i don't see anything wrong in it. gold has proved itself as a stable asset than others.