India's secret wealth worth Rs 27 lakh crores!
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The journal further goes on to add that India's private gold holdings are an estimated 15,000 tonnes. However, as per some experts, these are very conservative estimates and the actual number could be twice of this. Mind you, even 15,000 tonnes is not a small number. At current gold prices and after knocking off 20% value to account for dissimilarities in terms of purity, India's total gold reserves are worth an impressive US$ 600 bn. That's a cool Rs 27 lakh crores in rupee terms!
Just to put things in perspective, India's total gold would be enough to pay for all of India's oil imports for the next six years. Alternatively, it could fund as much as half of India's total infrastructure spending targeted for the next five year plan. However, this may not be all. The value of India's gold reserves looks all set to swell further as Governments across the world continue to print vast amounts of money. Clearly, by keeping a fair amount of their savings in the form of gold, Indians have proved themselves to be one of the most astute savers in the world.
Do you think we should keep a decent amount of our savings in gold? Share your views with us or you can also comment on our Facebook page.
01:06 | Chart of the day | |
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Shareholders, themselves, are becoming more savvy and aware of the market situation and are contesting the price which promoters are offering for buying out their stakes. Taking note of the fact that certain MNCs chose to delist their subsidiaries by paying a hefty premium, subsequent delisting proposals have hit a roadblock as the asking price of shareholders has been too high for parent companies. Indeed, parent companies and promoters will have to rethink their rationale for delisting and come out with some solid reasons if they no longer want their companies to be part of the Indian stock exchanges.
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The weak global demand can set inflation at easy levels by keeping commodity prices low. What is further expected to work in our favour is the small 13% share of exports in GDP which insulates us from global setbacks. The domestic consumption has a share of 60% in India's GDP. Such a strong domestic orientation was largely the reason of resilience in the previous financial crisis. Even now, equity valuations, acquisition trends and a conducive foreign investment policy environment are expected to keep capital inflows coming.
But then doesn't it sound too good? Well, here is the catch. The gains will materialize only if the crisis does not blow up into something bigger. The party could be spoilt if there is a default by the Eurozone countries as India still depends a lot on capital inflows to fund its ever rising current account deficit.
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The US stock markets were down by 1.4% during the week. S&P's warning that it might downgrade the US debt rating within next three months dented investor sentiments. Further, worries about the US and Europe debt trouble continued to haunt the markets. However, blockbuster earnings from search engine major, Google Inc, brought in some respite with Dow Jones closing on a flattish note in the last trading session.
After advancing for three consecutive weeks, Indian stock markets finally snapped its winning streak and were down by 1.6% during the week. Lack of positive cues from the global markets, unsatisfactory IIP data, deficient rainfall figures and disappointing start to the earnings season showered concerns on the markets. Further, bomb blasts in the city of Mumbai also rattled investor sentiments.
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04:56 | Weekend investing mantra |
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28 Responses to "India's secret wealth worth Rs 27 lakh crores!"
Mohan
Jul 24, 2011The gold found out in temples today and the gold in peoples lockers etc argole their own property. Why r we calculating what this gold will buy for us for the next so many years etc. There is plenty more money lying in Swiss Banks, all looted by the great likes of Gazni and exported clandestinely to these Swiss Banks. Indian Government has to bring this back to India and let Indians live a decent hassle free life. Will this government do it?
Ved from Victoria Institutions
Jul 21, 2011It is not gold that makes a nation great, but quality people. As for the value of the gold in the temple, if they are opened to the market, the gold value will come crashing down. It fact, it would become dirt cheap.
India currently doesn't have quality. Gold is not going to fill that gap. Quality comes from being with or under quality persons. Indian leaders are just straw quality-celibate, non-celibate or experimenting with celibacy.
Sarat Palat
Jul 19, 2011
I do believe that gold should be a part of our savings. Taking into consideration the easy liquidity, the rate of inflation in the country, very low risk comparing to shares and stocks, Gold should be a part of the saving portfolio.
sd
Jul 19, 2011USA has 8000tn of gold. Inflating the commodities is their game. One fine day when the bubble suits them, they will dump a portion of their gold & pay off their debt. After all Obama has an election to win next year.
ROSHAN KUMAR
Jul 18, 2011Sir I believe that instead of looking towards import of oil. We should consider our country infrastructure and other issues to compete at International Level.
Oil no matter watever $/bbls it is...Indian consumers will not move back.
S.K.DAMANI
Jul 18, 2011Well Well.
How about starting a GOLD for insfrastructure building.
Govt. can start a scheme. Individuals can give their gold to Bank / RBI for a period of 10yrs. and earn TAX free return of 6% - 8%p.a.
This Gold can be than given to IMF and get funds for infrastructure.
I would like guidance on only one query:
Can any one guarantee that the Gold would be returned in the said 10 years? (Can we give our savings to the politicians??
By the way Gold is likely to go up much more higher in future also: till such time the Dollars are printed.
Feed back thoughts are requested.
Thanks.
Damani
Vijay N
Jul 18, 2011In these times of nerve wracking global uncertainty, Gold, upto an extent of 10% of a portfolio, would make great sense. Not just with growth prospects in mind but with the hedge against a collapse of any other asset class.
Chandra N S
Jul 18, 2011Hopefully, UPA II Politicians & neo-MBAs won't read this article.
If they do, there is all the likelihood of the first community nationalizing the existing Gold.
The second community will then help the first community to sell it off to foreign countries at dirt-cheap price. Well, the first community is rich enough to pay commissions to second community.
Manohar Adsule
Jul 18, 2011Well,We Indian belive in saving and keep apart some of our saving for uncertain future.This is because we are taught to do so,appearntly it is turning a golden oppetunity to inest in gold.
Mohan
Jul 24, 2011Do u think the great UPA is sitting idle now? Already they must have developed schemes to loot this wealth slowly and slowly like Termites and export it to their secret Swiss Bank accounts. See in near future people will talk about where this gold has gone. Then this will be a bigger story than this 2G scam.