Budget 2015 puts the shine back on gold

Gold is said to be made in Supernovas. With such a bright origin, it’s no surprise that our affinity to gold has held strong through the ages, right up there with war, good food and good times.

Gold, since days of yore, has been considered one of the most important metals, owing to its alluring shine and amazing physical properties like extreme malleability. The many useful features of gold made it a valuable medium of exchange far before paper currency came about. Even with technological advances, gold still forms a significant part of the world economy. The richest countries have gold reserves that go into billions of dollars.


India’s obsession

India – particularly its women and temples – have hoarded gold throughout the ages. Gold is an integral part of Indian rituals like marriages. Bejewelled Indian brides, who could potentially double as independent light sources at the biggest and fattest of Indian weddings, usually have the choicest selections of gold jewellery from around the world.

It is believed that there are more than 20,000 tons of gold in India right now, but most of it lies, quite unproductively, in bank lockers or homes of average citizens. Hardly any of this gold sees the light of day in terms of monetization and trading. India is also the largest consumer/importer of gold in the world, which has further negatively skewed the country’s trade balance.

Against the backdrop of all these issues, the Government of India has announced a slew of measures aimed at easy monetization of gold stocked in private hands, valued at over $1 trillion.
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