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If It still Glitters It must be GOLD

The imports of gold have zoomed-up in spite of the fact that the price of the yellow metal is softening globally. Yes and this huge surge of Gold imports only proves one point and signals very strongly that GOLD has never in the past, present or in the future will ever lose its SHEEN and SHINE ever. Gold will always remain   to be the priority choice among the investors.

So much so that even the Indian government is getting lines on its forehead about this huge gold imports could undermine the nations payment positions and truly so with current account deficit is within limits of prudence due to diminishing of the global crude prices and on the other hand the extravagant foreign exchange on the imported gold will nullify these gains.

Although one fifth of the gold imported has to be exported and the remaining is for the domestic use for the premium and star trading houses and any attempt to desist to restrict the demand of gold through quantitative restrictions or other means like imposing higher import duties would only encourage otherwise sourcing of gold .

However the Gold will always remain to be the numero uno choice but the other financial instrument options are inflation indexed bonds which will also yield descent returns. It would be lot better that if goods and direct tax and service tax reforms will lower the rates and widen the base as well and highlight GOLD as the best choice as investors paradise !!!!!!!!!!!