India to dissuade people from investing in gold

[phideaux]

Ya can't make this stuff up.



Need to dissuade people from investing in gold: Pranab

Mumbai: Worried over flow of savings for investment in gold, Finance Minister Pranab Mukherjee on Saturday said there is a need to spread financial literacy to encourage people to invest in market instruments.

Pointing out that India's gold import surged to $60-62 billion in last fiscal, the Minister regretted that people are investing in gold with the expectation that the value of their investment would appreciate.

"Quantum of import of gold ... is a clear indication (that) large section of community...want (to) investment in dead asset only with expectation that value would appreciate", he said while speaking at Zee television award function.

The government is committed to make India an investment-friendly destination and financial power house of the world, Pranab said.

The Minister further said "time is ripe to motivate our educated upper middle class to climb from saving mode to wealth generation mode.

"...My request to financial analysts and other experts and leaders in this field is to ensure than we can create confidence in market, spread financial literacy and merit of investment could be widely spread", he said.

The Minister added that the government is committed to make India an investment-friendly destination and financial power house of the world.

"If India can built on its economic strength, it can be a source of stability for the world economy and safe destination for restless global capital which can help speed our developmental process," the Minister said.

On the economic issues, the Minister said, "the most important challenge before the country is to regain and then sustain 8-9 per annum."

At the same time, Mukherjee said, there is a need to maintain the basic parameters of healthy development, moderate rate of inflation, fiscal consolidation and current account deficit and obviously higher growth in exports.

While asking financial analysts and experts to educate investors, Mukherjee cautioned: "We need to put investors interest in forefornt. If we loose the interest of potential investors, growth process will be stalled."

He further said inputs of experts on policy correctiveness and reforms have helped the government to "move forward". "We are now on to next generation of financial sector reforms which include, among other things, widening and deepening the Indian security markets as part of concerted efforts to increase the participation of retail investors in the security market and further the goal of financial inclusion," he said.

In order to check gold imports, the government has increased basic customs duty on gold bars from 2 per cent to 4 per cent.

http://ibnlive.in.com/news/need-to-d.../266435-7.html

[AgBar]

WHOA!

Screw the financial stuff...

Quantum of import of gold

...how did they manage THAT?!?

Some new tunneling technique? Wave reflection, perhaps? Wait...do gold atoms obey Bose-Einstein statistics? Or Fermi-Driac? What's the total spin of a neutral gold atom, again? Man, I've got some stuff to look up...

They are decades ahead of us in gold teleportation technology!!! Heck, with some refinement, they can probably beam the stuff straight out of the ore!









...but yeah, telling Indians (of all people) not to buy gold is going to go over really well.

[Silver Art]

"Investing" in "market instruments" (i.e. paper) is much better than "investing" in gold.

I wonder if there is such a thing as "market instrument" jewelry for the India women to wear instead of gold jewelry? Then again, I seriously doubt that, for example, wearing a "necklace" of 0's and 1's will look very attractive and the weight of the computer monitor displaying 0's and 1's will put too much strain on a India woman's neck.

On a serious note, I suspect that the India population understands the concept of "If you don't hold it, you don't own it". "Market Instruments" fail to meet this basic concept.

[TimoneX]

"Quantum of import of gold ... is a clear indication (that) large section of community...want (to) investment in dead asset only with expectation that value would appreciate", he said while speaking at Zee television award function.

The nerve of people to invest "only with expectation that value would appreciate".

dead asset = fiat paper.

This guy should do some comic books...he'd fit right in.

[phideaux]

Most Indians, and most everybody with any understanding of history, know that gold is not an investment. Here it comes, all together now: "Gold is Money!"

[glockngold]

I'm getting ready to leave this morning to sell at the flea market.
One of my regular customers is an Indian immigrant.
He will spend 15 minutes trying to talk me down a dollar on a 3 dollar item.
He is followed by his wife who is always decked out in some nice gold bracelets & rings.

The husband carries the cash, but the wife holds the "money".

[Ragnarok]

Dissuading Indians from buying physical gold? Good luck with that, they already know the "if you don't hold it..." mantra, it's in their genes!

[hoarder]

"India" is not dissuading anybody from investing in gold, international bankers (U no who) are.

[Irons]

Then they should stop selling gram sized coins in thier post offices!

We can't make this stuff up!

[Constantine]

"Quantum of import of gold ... is a clear indication (that) large section of community...want (to) investment in dead asset only with expectation that value would appreciate", he said while speaking at Zee television award function.

Well unfortunately <for him>, it looks like the Indians (and myself) are going to keep relishing the smell of dead and decomposing bullion for quite a long time....

[latemetal]

"Rots of ruck" charlie!

[andial]

Finance Minister Pranab Mukherjee on Saturday said

I stopped reading right after that line.

[from_india]

saving mode to wealth generation mode 

Gold is money in india for the past 20000 years.


now this useless guy is giving instructions to educate people...
poor fellow.


even gold ETF is big failure in india.

they can't.

[andial]

gold ETF is big failure in india.

That's good to hear.

[hoarder]

Give them paper gold and silver. It worked on Americans.

[from_india]

Give them paper gold and silver. It worked on Americans.

when they took inventory in one ancient temple (4th century) they found $105B worth gold.
(still 2 more rooms to open)

if those kings saved everything in paper instead of gold,
they would have found only dust.

good to see that existing even after 400 years of muslim rule & 200 years of british rule.

[Alric]

I like how he calls it financial literacy. Its like a 4 year old reading the cat in the hat and telling their parents who is a PHD physicist that they need to learn to read.