The country is thinking about a plan to allow banks to buy gold GCZ3 -1.18% from the public and the nation’s Trade Minister Anand Sharma has said that India’s central bank should consider monetizing gold holdings, according to recent reports from Reuters.
The plan would allow banks to buy gold directly from the public, “cutting out the premiums that jewelers and pawn shops charge sellers,”
“We see this plan as a thinly-disguised plan to give the banking sector and government access to gold for the nation’s benefit,” he said.
…“While the word monetizing gold can be seen as another word for confiscating, it may not be initially seen as an outright confiscation of gold,” said Phillips. “But once in the government’s (through the banks) hands, it is a small move to hold it for as long as they want. ‘A rose by any other name smells as sweet’! I see it as confiscation but not one that makes owning gold illegal.”
…“While the word monetizing gold can be seen as another word for confiscating, it may not be initially seen as an outright confiscation of gold,” said Phillips. “But once in the government’s (through the banks) hands, it is a small move to hold it for as long as they want. ‘A rose by any other name smells as sweet’! I see it as confiscation but not one that makes owning gold illegal.”
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