Why Sovereign Gold Bond Scheme needs a review

India mines just 0.1% of the globally mined gold however it has almost 25% share of the overall global annual demand of the yellow metal. This puts a lot of pressure on country’s current account and foreign exchange reserves. In the annual Union Budget of 2015, with the intent of enabling purchase of gold in electronic form and reducing gold imports, government announced the Sovereign Gold Bond Scheme (SGBS). Sovereign Gold Bonds(SGBs) are government securities denominated in grams of gold. […]

NSE v.s. BSE – We have a winner !

National Stock Exchange, established in 1992, launched and popularised electronic screen based trading in India. Ever since then Bombay Stock Exchange – Asia’s oldest stock exchange, has been ceding space in equity markets to NSE. This is despite the fact that BSE has almost thrice the number of companies listed on its platform as compared to NSE (as on Apr 2020, BSE had 5542 companies listed while NSE had 1961 companies listed in equity cash platform). Graph depicting annual trading […]

Question : Who lends money to Indian government ?

Indian government’s total expenditure normally remains much higher than the total revenue receipts. The difference, known as fiscal deficit, is the amount of capital government needs to borrow to bridge this gap. After eight years of moderation, the fiscal deficit saw a significant bump in FY20 and is expected to increase significantly in the current year due to Covid. The deficit projections for the current fiscal have ranged between 6.75% to 7.25% of GDP – levels last observed three decades […]

Gold Rush – Overview of Global Demand and Supply of Gold

JP Morgan once famously said “Gold is money, everything else is credit.” Interestingly, many scientists believe that most of the accessible Gold, on which till few decades back our entire monetary system was based on, is extra-terrestrial in nature and brought to Earth by asteroids from outer space. Ever since then (as per World Gold Council estimates) around 197,576 tonnes of gold has been mined throughout history, of which around two-thirds has been mined since 1950.Further, since gold is virtually […]

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