The World Gold Council says the reason for the drop in India’s gold demand could be the government’s was against illegal wealth, as well as a weak farm economy. The World Gold Council has said that gold consumption this year is likely to be the lowest in eight years. People buy gold as a hedge against high inflation—especially when real interest rates on financial assets are negative. High gold imports were one major reason the rupee came under pressure in 2013. Gold will still have a place in family portfolios, but hopefully dwarfed by financial assets.

Source: Mint November 09, 2017 18:56 UTC