After Indian Prime Minister Narendra #Modi banned Rs 500 and Rs 1000 notes after Diwali the #gold prices have sky-rocketed in the cash market. Due to government's fear, gold jewelry shops are not selling or buying gold to customers. One of many ways corrupted shop owners would cover the black money is they would show gold reserves being bought or rented to unaccounted owners and convert black money to accounted money. Despite the efforts there are places that help convert unaccounted money with new currency. If one is trying to buy or sell gold one has to be ready to see short term speculation which might drive the price up or down. It will take about 2-3 months for the country to stabilze so would the gold markets.
Prime Minister Narendra #Modi said that this decision was taken to combat corruption. Unfortunately, this move has actually added to corruption. My sources in India tell me there are those there now who are ready to give you any amount of cash against a certain percentage of commission. They also exchange old notes with new notes after charging a hefty fee. The police have raided many involved in such cases, but this will be an ongoing problem till the crunch of currency note is not stabilized. Once the notes are in circulation, along with the daily cap removed, things will be much better.
When it comes to #demonetization, it's a mixed reaction among people. The author said it right, it's the low-income group (middle class) who get affected. Being a #cash dominating society, many are currently facing issues due to the cap of withdrawing a max of Rs. 24000 per week from the banks and max of Rs. 2500 per day from ATMs. Inspite of the inconvenience caused due to this cap, people still appreciate the decision taken by the government. #modi#india
Modi’s Demonetization Is A Cure Worse Than The Disease
I agree with the author. #Modi is dangerous and will ruin the Indian economy.
Cash Crisis in India Hitting Gold Sales Hard
After Indian Prime Minister Narendra #Modi banned Rs 500 and Rs 1000 notes after Diwali the #gold prices have sky-rocketed in the cash market. Due to government's fear, gold jewelry shops are not selling or buying gold to customers. One of many ways corrupted shop owners would cover the black money is they would show gold reserves being bought or rented to unaccounted owners and convert black money to accounted money. Despite the efforts there are places that help convert unaccounted money with new currency. If one is trying to buy or sell gold one has to be ready to see short term speculation which might drive the price up or down. It will take about 2-3 months for the country to stabilze so would the gold markets.
Modi’s Demonetization Is A Cure Worse Than The Disease
Prime Minister Narendra #Modi said that this decision was taken to combat corruption. Unfortunately, this move has actually added to corruption. My sources in India tell me there are those there now who are ready to give you any amount of cash against a certain percentage of commission. They also exchange old notes with new notes after charging a hefty fee. The police have raided many involved in such cases, but this will be an ongoing problem till the crunch of currency note is not stabilized. Once the notes are in circulation, along with the daily cap removed, things will be much better.
Modi’s Demonetization Is A Cure Worse Than The Disease
When it comes to #demonetization, it's a mixed reaction among people. The author said it right, it's the low-income group (middle class) who get affected. Being a #cash dominating society, many are currently facing issues due to the cap of withdrawing a max of Rs. 24000 per week from the banks and max of Rs. 2500 per day from ATMs. Inspite of the inconvenience caused due to this cap, people still appreciate the decision taken by the government. #modi #india