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Benign inflation key to curbing gold demand

It seems there is no easy way to tackle the country’s fixation with gold. Large-scale investment in gold by individuals is the result of a confluence of diverse factors. One of the long-term solutions to this problem is to have a “benign inflation regime”, which needs to supplemented with both demand reduction and supply management measures, in addition to promoting alternative asset class of similar returns. This was the key message of the Reserve Bank of India’s (RBI) working group appointed to look into the issues of gold import and gold loan NBFCs (non-banking ...