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Waste of Foreign Exchange - Gold
16th May 1999 Manish @del2.vsnl.net.in
Hello, Talking about Waste of Foreign Exchange by India, Do you know that a good part of India's Foreign Exchange is invested or (wasted) in importing GOLD....a luxury product. This is a joke: The reason why Crime has gone up is because the people who were smuggling gold earlier are out of jobs as the government has decided to enter into gold imports (through banks etc.) by decreasing the official duty for the import of gold. Fact: Most countries are selling, while we are buying. One thing India is #1 at 'the largest consumer of gold in the world.' Regards [email protected]
16th May 1999
Rajesh Verma @yahoo.com
I completely agree with the previous author. The Indian govt should sell off it gold holdings and instead hold US and other treasury bills. Gold has not kept up with inflation over the years and India's foreign exchange keeps eroding year by year because of these useless gold holdings. Also people should wise up and stop buying gold for investments because it has proven itself to be a useless investment. It is better to buy shares. India should follow the lead of the US where the stock market boom is fuelled by retail investors. To do this SEBI must make the stock market accessible to the common man. One important point would be to strongly regulate the stock market so that the common man is not taken for a ride and can have confidence his money will not disapper due to unscrupulous brokers/companies.
19th May 1999
Mr. P.D.JAIN @bom4.vsnl.net.in
This is further to messages on waste of foreign exchange on gold.this issue is being debated but the argument about stopping the import is that smuggling any way steps in to fulfil the lust of indians for gold If gold import is stopped our foreign exchange reserves will go up substantially. As pointed out in this coloumn,most Central Banks in Europe have been selling gold.Why dont we also do it ?The conc ept of gold reserve is oudated and we will do well to sell some gold in a controlled manner. What happens to confiscated gold ? And talk,ing of waste of foreign exchange,why is it necessary to have most Indian films shot abroad?Ms.Sushma Swaraj,when she was Minister made it so much easier to g3t foreign exchange for shooting abroad!! Is any one listening ? P.D.Jain
20th May 1999
P-S @giasmd01.vsnl.net.in
Foreign exchange is wasted in this country because it has become a controlled item and can be either spent or saved only with the explicit consent of the Government. Until this situation persists, we may scream from our bases or reform from all sides, yet at the end of the day or scheme we will always end up with a paucity in the Foreign exchange reserves. Controls can only deter fresh investment but controls can WILL also boost foreign exchange spending as citizens when denied the right to use foreign exchange something by law, most always find out a way by which they extract much more foreign exchange than they would have if controls were taken off. This is due to the basic insecurity of availability that is omnipresent in each one of us. Much has been said about controls being necessary - but who advocates them? Precisely the people who have made foreign exchange spending a daily necessity. No wonder they advocate controls. And we as a whole swallow hook, line & sinker the statements emanating from these so called "experts" or whatever other name or posts they stamp their "authoritative views or policies" with. All the while we conveniently overlook or forget that there are nations which have no control & inspite of such a shortcoming have managed to make it to the developed nation status. If we still accept that controls are needed for our particular needs and that we should not compare ourselves with other nations, then we deserve to be in the state we are. It only reminds of an old quote which says:- "Focus 90% of your time on solutions and only 10% of your time on problems". Unfortunately almost all of us have been used to being dictated to and being told what was right and what was wrong which ultimately translated to what those in power wanted us to do to fulfill their own needs. Go ahead and ponder over this particular foreign exchange problem & all other public interest problems that we supposedly face & you will find only the selfishness & self interest of a select few behind the perpetuation of the problem. P.S.
20th May 1999
PK Joseph @gto.net.om
Millions of people in India will be affected by the price of Gold coming down. U.K. is planning to sell 430 tons, US 130 tons. Russians will be forced to sell if things continue like this there. Australians says they have so much gold already surveyed but not extracted is enough for them as counter guarantee for their currency and hence will be selling their entire gold. The gold which is slashed away by the late Ferdinand Marcos, at an undisclosed airport hanger in Switzerland will be sold eventually. (roomers are that it is more than 1000 tons) All those gold will be bought by us, gold hungry Indians. Then the next will be that the bank rates will comedown. Even in US and Japan the interest rate is around 8%. Hence people will invest in land and the land prices will go up. One advantage of the gold price crashing will be that innocent children and women will not be killed for a gram of gold which is happening frequently because nobody will be able to sell it and make money. Unofficial estimate is that 13000 tons of gold is there in India in private hands
21st May 1999
Pranav Lal @softhome.net
I agree. The more controled a thing, the more one wants to get it and the more ways one finds of doing so. If foreign exchange spending was to be de-regulated, then after the innitial rush, no one would even bother. Pranav
23rd May 1999
Mr. P.D.JAIN @bom4.vsnl.net.in
Those who want total freedom on the use of foreign exchange,import of gold etc will do well to learn from China-a country which has left us behind perhaps for ever.Even Japan does not permit free import of gold and doea not have 22/24 karat gold ornaments. China has a trade surplup of about $54 billion.Create that surplus then every thing can be imported. We import Icecream now ! What else you wish to import.The Comput er Hard Ware manuctoring has almost been killed by imports.Slowly othe indutries will be killed.Already the US automible industry has complained to WTO about restritive import policy!! P.D.Jain
25th May 1999
ANKH, Information Services @ankhnet.com
The purpose of allowing gold in India is to stop smuggling of gold. India is largest market for the gold, if Indian government does not allow import of gold, it will come via illegal means.. It's more harmful to Nation if gold come to India via smuggling instead of legitimate route. Government should also maintain the price of gold to discourage smuggling. Smuggling give boost to crime and other social problem. Government should allow import of gold. Otherwise we have to face few more DONs. With best regards, Dr. Ajay N. Khosla
