Monday, 7 January 2013

View- Gold prices in India are determined by Rupee volatility

 

 

 


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The FM wants to raise import duty on gold but that will not help India's CAD 

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Mr FM, Gold isn't the problem, the Rupee is. Fix that

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The FM and the RBI could never go more wrong in their understanding of gold. In fact the rise in price of gold in India is more due to INR depreciation than due to demand. Table 1 gives the performance of gold in USD and INR terms from peaks seen in August 2011. 

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Arjun Parthasarathy

Editor: Investors are Idiots.com

www.investorsareidiots.com

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