| The gold monetisation schemes are laudable, but they are up against Indians’ craving for the yellow metal. At present, the demand for gold is down and the current account deficit very comfortable. But we can never be sure how Indians will behave when it comes to gold. It is for this reason that the government has been working on devising alternative instruments that would deliver the same benefits to holders and potential buyers of the metal.
This could further reduce the physical import of gold. The gold bond and monetisation schemes are progressive steps taken by the government in this regard. Both assume that the potential client is not strongly inclined to have physical gold in possession and that by providing similar rewards, this inclination will only decrease...............................................Full Article: Source
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