ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Nothing Like Gold

You state that increasing the price of gold through a curb on import could induce households to shift to financial savings. What makes you so sure that this will happen? At present the customs duty on gold is 10%. Smuggling is rampant. Note it was gold smuggling way back in the 1980s that led to the emergence of the Dawoods and their likes.

You state that increasing the price of gold through a curb on import could induce households to shift to financial savings. What makes you so sure that this will happen? At present the customs duty on gold is 10%. Smuggling is rampant. Note it was gold smuggling way back in the 1980s that led to the emergence of the Dawoods and their likes.

Gold has two sides, a currency aspect as well as a commodity dimension. Gold yields interest on lending and is a medium of exchange, and hence, it is a currency. Gold is also amenable to value addition through jewellery, etc, and is thus a commodity. So gold is a perfect hybrid asset.

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