GOLDEN MOMENT
Gold management needs a makeover | Business Line
The link(given above) to my article “Gold management needs a makeover” published in The Hindu Business Line on April 13, 2012, has been posted at this Blog earlier. Thought of revisiting it today on the occasion of the launch of Gold Monetisation Scheme, Sovereign Gold Bond Scheme and Indian GOLD coin by Prime Minister Narendra Modi.
Hopefully the other suggestions, especially those relating to putting in place an institutional arrangement for gold management, contained in the article also will receive the attention of GOI and RBI in due course. Excerpts from the article:
GOLDEN MOMENT
The link(given above) to my article “Gold management needs a makeover” published in The Hindu Business Line on April 13, 2012, has been posted at this Blog earlier. Thought of revisiting it today on the occasion of the launch of Gold Monetisation Scheme, Sovereign Gold Bond Scheme and Indian GOLD coin by Prime Minister Narendra Modi.
Hopefully the other suggestions, especially those relating to putting in place an institutional arrangement for gold management, contained in the article also will receive the attention of GOI and RBI in due course. Excerpts from the article:
“INSTITUTIONAL CHANGE
The time is ripe for authorities to think in terms of dedicated professional institutions at the regional/state level, which will handle gold from a banking angle. An apex body should be equipped with linkages for import and export of gold and gold products with borrowing and lending capabilities.
States like Kerala have successfully intervened in other similar sectors like chits/kuris and lotteries, which were also areas of exploitation by vested interests. Private players had to fall in line and function with discipline and self-regulation.
Establishment of ‘Gold Corporations' with state participation could also be debated. Such an institution can act as a depository where the gold possession of individuals now in bank lockers and the pledged gold can find a safe shelter, provided the purity can be ensured, and the ‘Corporation' can find the resources and skill to deal in gold and retain the customers' confidence.”
M G Warrier, Mumbai
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