Author : M. Sudha Madhavi 1
Date of Publication :20th May 2016
Abstract: From ages Indian women’s love for gold is very famous. The yellow metal which was described as ‘barbaric relic’ by famous thinkers has always been occupying prime place in the life of Indian woman. However for a long period of time Indian Government failed to consider this fact and capitalize it. They followed US way and considered gold as evil asset. The picture has reversed with the bounce back of the gold in global economy. In spite of much disregard of modern economist about its economic value, to their shock gold now proves its mystic hidden power by bouncing back as a financial asset in the global economy. Realizing the power of gold which is backed by 20,000 tons of gold lying idle with people and temple Modi government accepted gold as a reality of the Indian Economy and launched three gold schemes namely Gold Monetization Scheme, Sovereign Gold Bonds and Gold Coin Scheme. Monetization is the process of converting or establishing something into legal tender. However, still the questions remain about the success of the schemes. GMS aims to alleviate the need to hold physical gold or in more precise finance terms improve the productivity of gold. Will the scheme trio achieve the purpose? If not what modifications are required to be adopted for taking the scheme much more nearer to people knowing the Indian psychology towards gold. The present paper is a discussion paper on these thought provoking issues. Authors attempt to trigger few questions into the minds of the esteemed academicians with a modest attempt to provide few suggestions
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