Abstract
India has toppled China to become world’s largest buyer of the gold in 2015. Gold is sensitively attached with the Indians and they prefer buying gold in the form of jewellery. The Central Government has come up with three gold schemes on 5th November, 2015 i.e., Gold Monetisation scheme, Sovereign Gold Bond scheme and India Gold Coin scheme to reduce the requirements of gold through imports. The less volatile nature of gold attracts the Indian consumers to choose gold as the best investment option. Nearly, 20,000 tonnes of gold are idle with Indian households, temples etc. which is not being traded or monetised in the form of jewellery. The accomplishment of economically stable gold investment schemes can bring changes in our economy.
 Therefore, this study attempts to examine the three gold schemes in detail and probable impact of gold schemes on current account deficit (CAD). This paper discuss about the probable advantages and disadvantages of Gold schemes. It also talks about the major concerns that may hinder the success of gold schemes. Finally, the study makes some suggestions to develop gold market and monetise 20,000 tonnes of gold held by households and temples in the country.
Highlights
Gold is an asset that has attracted people for thousands of years because it is durable, transportable and universally acceptable
India accounts for more than a quarter of global gold imports despite being the contributor of less than 2 percent in the global trade
Underlying that India, which has around 20,000 tonnes of idle gold lying with households, has no reason to be described as a poor country
Summary
Gold is an asset that has attracted people for thousands of years because it is durable, transportable and universally acceptable. India is the largest buyer of gold in the world. The preferences in India are influenced by many social, economic and cultural factors. In India, gold is viewed as a liquid asset and widely recognized for intergenerational transfer of wealth as it is considered to be the most efficient store of value. In the last few years, gold imports have been rising significantly. India accounts for more than a quarter of global gold imports despite being the contributor of less than 2 percent in the global trade. India is the largest consumers of gold in the world, accounting for around 26% in the year 2015
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