New trend in gold demand [ demand rising along side price increase ]–will likely escalate import bill –skew the trade balance and trigger foreien exchange outflows [2] Household savings invested in gold are stockpiled and locked out of the financial system [3] Further useful information is given in the editorial and also suggested are ways to tackle the issue–from long term perspective – Courtey BL

Continued [1] historically, bulk of India’s gold purchases has been from jewellery buyers looking to meet wedding commitments, or to use as collateral during distress.

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