India's Gold Buyback Strategy: A Silver Bullet for Economic Growth?
India's Gold Buyback Strategy: A Silver Bullet for Economic Growth? Unlocking Idle Wealth Through Strategic Gold Monetization India sits on a massive treasure trove—approximately $5 trillion worth of gold held by households, equivalent to 35,000 tonnes. This represents the world's largest pool of domestic savings outside the formal financial system. However, much of this wealth remains idle and unproductive in the parallel economy. A recent Morgan Stanley report suggests that bringing even a portion of this gold into the mainstream economy could yield significant economic benefits for the nation. The RBI's Proposed Gold Purchase Program The Reserve Bank of India is considering a structured gold purchase program that could transform this dormant asset into productive capital. Here's how the proposed scheme would work: Payment Structure: 65% of the gold's value would be paid immediately in cash The remaining 35% would be converted into 29-year zero-coupon gov...