The
survey, part of a report, ‘Why India Needs a Gold Policy’, released here
on recenlty, said: “
Among
respondents,
* 19% said they would buy more gold if prices
rose
* 34% said their behaviour would not change.
* 14% said they would stop buying gold if
prices increased
* 6% said they would sell.”
The
survey covered 5000 respondents & was conducted during the period when the
erstwhile United Progressive Alliance Government increased the import duty
& the Reserve Bank of India (RBI) brought in the ‘80:20’ scheme (scrapped
recently) to check the ballooning current account deficit (CAD) in July 2013.
The
survey also found that consumers continue to buy gold regardless of their
circumstances, as
*
77% of the respondents bought gold at least once in 2013; more than half bought
more gold in 2013 than in the previous year.
*
77% said they bought gold as a safe investment
*
53% considered it primarily an adornment
*
50% believed that it was for both.
In
terms of monetisation of gold, half of the people surveyed said they would be
willing to deposit their gold to earn interest, 72% said they were happy to
receive different gold than their initial deposit, 62% said they would prefer
cash or / India-branded coins at maturity.
The
council estimates that nearly 22000 tonnes of gold in Indian households can be
used to fund economic growth.
Policy
suggestions...!
A
report based on the survey has recommended a seven-point agenda for the new
gold policy, including driving gold standardisation so that buyers &
sellers have faith in quality and price, introducing gold - backed investments
& saving products, and revitalising the Gold Deposit Scheme.
It
also suggested setting up an India Gold Exchange and a Gold Board, developing
accredited refineries & allowing Indian banks to use gold as part of the
liquidity reserves.
“Consumption
of gold has always been intertwined with the Indian household’s financial
planning goals and has, through generations, remained a natural choice of
saving of all households,” said Mr. A Didar Singh, Secretary General, FICCI.
Mr.
Somasundaram PR, India Managing Director, World Gold Council, said the need of
the hour is to re-engage all stakeholders to develop a coherent long-term
‘India Gold Policy’ that “results in a robust infrastructure for gold, drives
standardisation & transparency, encourages gold-based investment products
and supports the economic priorities of the country.”
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