Joshua Morgan Brown

Major Changes Coming to India's Gold Market

Hey Carlos,
Thanks for reading...I don't come across in this piece with a strong opinion on what the effects will be, my goal here was simply to frame the debate.

That said, I would imagine that cultural signifcance or not, someone who needs to feed their family in Inida or elsewhere would probably melt and sell...

what are your thoughts?


On Jul 07 11:39 AM Carlos Lam wrote:

> The author's article reveals an inconsistency that I call on him
> to answer: is gold ownership in India primarily for wealth storage
> or primarily "of cultural significance?" If the former, then there
> may indeed be a dampening of import demand. However, in the long-term
> may even such a dampening be "dampened" itself by India's rising
> middle class?
>
> If the latter, then I fail to see how a large portion of Indians'
> gold jewelry will be monetized; will a prized ornament, for example,
> be thoughtlessly melted down and converted to gold bars? That sounds
> strange. I am unfamiliar, however, with Indian customs vis-a-vis
> heirlooms; their view of prized ornaments may differ from ours.