May 11, 2013

The Farce Called Akshaya Trithiya

To the vast Indian middle class who are always cribbing about the problems of Government , corruption, and much more, if there is a simple service that you can do the nation, just sell your gold..

Why ? Because one of the aspects that you are consistently lamenting is the inflation. And a huge contribution to that is the falling value of rupee which makes the imports costlier, especially fuel, which has a multiplier effect on prices of most consumer goods..One of the most important contributors on rupee fall is our current account deficit ( in simple words, we import more than the export ) .  And one of the main contributors to this is the ever increasing gold imports for domestic consumption.  If you sell your gold, atleast the supply in local market will increase and should bring down the pressure on rupee.

The savvy marketers over the last few years have found a way to tap into the Indian attraction towards the yellow metal by this non-sense called Akshaya Tithiya , which they have extended to a week this year.  And the campaigns have reached such nonsense such as - "Invest in Gold Mutual fund on the auspicious occasion of Akshaya Trithiya"

"It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

- Warren Buffet