India's gold holdings

I had a great time reading around your post as I read it extensively. Excellent writing! I am looking forward to hearing more from you. By the way, buying and collecting Gold Coins is a good investment. Find out more on this site for more information about gold investment, buying Gold Coins and a lot more other precious metals: www.goldcoinsgain.com

My friend, 15000 tonnes amounts to only $500 billion. Secondly, GOI will borrow $100+ billion this year, from Indian public. This amount should be enough for your pet projects & indeed many states are getting around to doing it (Delhi is looking to generate 50+MW electricity from solid waste. Safe drinking water is also being progressively provided everywhere. Shelter or public housing projects are so successful/ profitable that GOI has broken its target & is actively clearing slums with help of private sector!!) Clearly, rapid urbanisation as well need for country-wide infrastructure demands huge and on-going capital that GOI does not have. Instead of Public-only investment, GOI has woken up to find that private sector (ie. those holding $500 billion private gold and others) can do most of this investment. eg. look at all the private Real Estate developments. As per GOI, roads create wealth (which gets passed on in higher taxes to GOI) - hence, it has opened up design, build and operate opp. to even foreign players. Question for you  1) Is GOI a better investor than the public from whom the money is being extracted via public borrowing? 2) Why hasn't GOI done more with this huge public borrowing. 3) How does GOI unlock the value of private gold? Answer: 1) No. Governments are inefficient and probably corrupt. Even in profitable projects, the gains are wasted away in inefficient adminstation and employee perks (ie. Air India). 2) GOI is doing some good, as mentioned. But it has to cater for many needs incl. poor farmers and high fuel costs. In doing so, it misses out on many profitable investments. It could do more in strategic investment, incl. education, health, public transport. 3) Stimulate private business sector - incl building infrastructure, PPP projects. Stimulate private equity investment by selling off stakes in PSUs. Develop financial instruments, incl general insurance, pensions, life insurance. Gold is but one investment. You will be shocked to know that Indian public invests upto 40% of its income.

My dear friend. At current gold rates a ton costs 3.35 billion USD and you can calculate the current value of gold held in private hands in India. It is $ 50,250 billion dollars and not $500 billion dollars. What $ 50,250 billion dollars can do if the value is unlocked I leave it to Isscan imagination.

Back again: From you main post: "India surprised the world by buying out 200 metric tons of Gold from IMF at $6.7  billion on 3/11/09..." In other words, 1000 tonne of gold = $33.5 Billion (X5 $6.7 billion figure) or $ 502.5 billion for 15,000 tonnes. Also from your post, at $ 1045 / ounce --> 529109429.24371 ounce (15000 tonnes) * $1045 = $552.91935 billion. (Almost idential to $500 billion).  

Back again: It would be worth my while to comment if you actually read my post- the money is not GOI's to spend as it sees fit... I DON'T HAVE A SAY IN IT EITHER!! You are also forgetting that these private holders of Gold may use it as collateral in times of need ... or to buy a business etc.   BTW what does "unlocking value" mean? My house is worth $3+ million, how do YOU unlock the value of my house? Say YOU will have me sell it and rhen what - pass on the money to GOI or your personal interest to spend on the poor??? And if I'm made to sell and someone will buy it, do you go after his money as well? While you are at it.. can I have what is in your pocket?? ANSWER to your problem is SIMPLE: STOP IMPORTING GOLD!! STOP MAKING AND STOP SELLING JEWELRY OF ANY KIND!!! STOP MAKING EXPENSIVE HOUSES ALSO. If the GOI seizes all private gold.. what does it do then? Loan it back to the private players .. who will in effect own the gold that was theirs anyway. And why would any Indian want gold if GOI will rob them of it anyway?? Perhaps GOI can sell it overseas (or borrow overseas) .. then, GOI will have foreign currency .. but what use will that be as GOI already has £300 billion in foreign curency reserves!!!!!  

Back again: It would be worth my while to comment if you actually read my post- the money is not GOI's to spend as it sees fit... I DON'T HAVE A SAY IN IT EITHER!! You are also forgetting that these private holders of Gold may use it as collateral in times of need ... or to buy a business etc.   BTW what does "unlocking value" mean? My house is worth $3+ million, how do YOU unlock the value of my house? Say YOU will have me sell it and rhen what - pass on the money to GOI or your personal interest to spend on the poor??? And if I'm made to sell and someone will buy it, do you go after his money as well? While you are at it.. can I have what is in your pocket?? ANSWER to your problem is SIMPLE: STOP IMPORTING GOLD!! STOP MAKING AND STOP SELLING JEWELRY OF ANY KIND!!! STOP MAKING EXPENSIVE HOUSES ALSO. If the GOI seizes all private gold.. what does it do then? Loan it back to the private players .. who will in effect own the gold that was theirs anyway. And why would any Indian want gold if GOI will rob them of it anyway?? Perhaps GOI can sell it overseas (or borrow overseas) .. then, GOI will have foreign currency .. but what use will that be as GOI already has £300 billion in foreign curency reserves!!!!!  

I apologize to Issacn and other readers as I erred in calculating the current value of the estimated private gold holdings in India. Yes Issacn is right, The value comes to $500 billion dollars and not 15,250 billion dollars as I mentioned.