A Nation Is Trying To Stop A Gold Buying Frenzy — Here’s Why
Stop buying gold for one year. That is a request from a sitting world leader. A government has just told its citizens to stop buying gold.
This isn’t some fringe regime; it’s not about a wartime emergency. India is the world’s second-largest gold market.
When a prime minister has to make that appeal publicly, it means that the pressure underneath the surface has become impossible to hide.
And the question isn’t whether you should listen to the request; the question is what it tells you about the control they are trying to grasp at, and the currency they are trying to protect.
Prime Minister Modi has urged Indians to avoid buying gold for at least a year to preserve foreign exchange reserves.
In April this year, official gold imports reportedly collapsed to around 15 tons against a monthly average of 60 tons, one of the weakest months in 30 years outside of the pandemic era.