MOSCOW, September 12 (RIA Novosti) – The price of gold in India has decreased by a quarter, weakening Indian confidence in gold as a store of wealth, The Times of India reported Friday.
“I bought jewelry when the price of gold was 32,000 rupees (per 10 grams) last year. Now jewelers won’t pay me more than 27,000 rupees if I want to sell. Why should I invest in gold?,” Kiran Laxman Salunkhe, a farmer from Vangal was quoted by The Times of India as saying.
According to The Times of India, the main reason for the drop in gold prices was stocks that laid their hopes on Prime Minister Narendra Modi’s election pledges of “better days”.
“Nowadays it is risky to keep jewelry. Burglaries are on the increase,” Salunkhe told The Times of India. “With a fixed deposit there is no risk.”
Prime Minister Modi’s policy that every Indian household should get a bank account, better education and living standards as well as falling inflation expectations are likewise expected to alter the investment culture of Indians, the news website stated.
The Times of India suggests that the lack of interest in gold would assist in tackling India’s external deficits and cap world gold prices trading sideways in 2014.