1. In the fiscal year 2015-16, the finance minister of India, Arun Jaitley announced Gold Monetisation Policy in India. Under the Gold Monetisation Scheme, the customer can deposit their gold and earn interest on it. The objective of this scheme was to mobilize the estimated 20,000 tonnes of Gold in hand with the households of the country and in different places in different forms. The reason being gold investments in India is mostly an ‘unproductive asset’. The stocks of gold in India are estimated to be over 20,000 tonne (worth over Rs. 60 lakh crore) but most of this gold is neither traded nor monetized. Secondly, it is aimed to reduce the quantity of gold being imported by India, which stands as second largest imported commodity after …show more content…
The present scheme is an improvement over the previous version in various respects. A stark difference can be seen in their objectives. GDS: To mobilize the gold held by households and institutions in the country whereas the Monetisation focuses on mobilizing the gold held by households and institutions , to mobilise and put the gold into productive use and the long-term objective to reduce the country’s reliance on the import of gold to meet the domestic demand. GDS was highly criticised for its infrastructure because of its reliance on the existing infrastructure with banks and government mints, whereas under the new scheme Banks will be freed from handling physical gold and concentrate on their expertise of banking operations, private sector will be engaged for refineries and engage collection centres that are BIS certified. Under the new scheme the deposited gold is proposed to be used for: Auctioning, replenishment of RBI’s gold reserves , coins and for lending to jewellers. While in the old system utilization of gold was not clearly specified in the scheme. The new scheme seems to be a right step in the right direction as the mobilized gold will supplement RBI’s gold reserves and it will help in reducing the …show more content…
A major setback can be the mere fact that Indian consumers attach a high degree of emotional value to their gold holding, especially traditional jewellery. It can be very difficult to convince them to get over the cultural nuance attached to gold in India, for just 2-3% of interest rate. Indian families give too much importance to the traditional and cultural value of the gold and they keep on passing the ornaments or any other form of gold from one generation to the next generation, and it doesn’t generally happens with the maintenance of the record of the metal. So, the most of household gold in India are unaccounted. Also, the process of purification testing and assaying of gold is a cumbersome process both for the consumer as well as the bank. While rural India possess a good chunk of domestic gold deposit, thereby refineries located at urban & sub-urban centres may create logistic problems for the rural consumers. The MoF has proposed Know Your Customer (KYC) fulfilment for depositing gold, which can be a deterrent, in case of incremental scrutiny by the Income-Tax Department on deposited gold. Also majority of the consumers may not possess the original bill or voucher of the jewellery which in many cases can be inter-generational & archaic, thus posing additional roadblock in case of documental evidence for gold holdings are sought by the
To conclude, the video “Caravans of Gold” by Basil Davidson, the aim of the video was to give the viewers a better understanding of how Africa and its empires used their supply of gold as an advantage to their success. It embodied critical points to vindicate why Africa was such an intricate nation because how they use gold and the various empires that used gold to their benefit. By discovering the complexity of Africa, people are able to have a better clarification of this continent and how it flourished because of its
These two passages “There’s Still Gold in These Hills” and “Letter From a Gold Miner” help the reader understand the history and process of gold mining in the US. Both passages give detailed information, specific instructions, and an interesting background about gold mining. These passages use different strategies to help the reader perceive the history and process. These strategies may include using specific dates of when the gold rush took place, information to help the reader picture the setting of where to find gold, and also teaches the process step by step.
Gold is one of the most valuable materials all around the world. This jewel has its own glittering appearance and shiny color which induce people to desire to possess it. That’s probably why Europeans in the middle age have explored new continents and invaded other civilizations to find this glittering material. Americans also had given much endeavor to mine that valuable jewel in the time of gold rush. Investigating these events, gold has immensely affected the world history; the Age of Exploration, invasions of Spaniards, and the development of California.
The Gilded Age is a period of volatile development in American trade and cultivation. Gilded Age government were conquered by fraud, as representatives took inducements and content their groups with posh management jobs. The three major problem happened in during Glided age was Currency Reform, Social Darwinism and political corruption. The Currency Reform is one of the most significant problem commerce with finances was that of Currency Reform. However the corruption was so common during glided age. However because of that City government administrated by dishonest machines like” New York's Tammany Hall”. The simple problem reposes about the idea that the quantity of money in flow controls its worth. However, it shared by that knowledge about l that money that was not supported by solid funds.
The coins made in gold, silver and bronze were traded during Roman Empire and the shortage of coins created a barrier for money circulation. However with the establishment of paper money, a sophisticated banking, global clearing system and electronic money, the global financial system evolved with a worldwide framework of legal agreements. In the Global Financial market, foreign currencies issued by the world, countries are traded by the buyers and sellers using currency exchange rates. Now a day, it is very common practices of companies in one country to raise capital in a foreign country by listing their stocks on major foreign exchanges given the growth of equity markets are becoming more globalized (SNHU, 2015).
In this way, an explanation will be provided for why the gold standard rose to prominence and then declined. The gold standard is a monetary system in which the value of a nation’s currency is attached to the value of gold. In this system, gold can be exchanged for currency and currency can be exchanged for gold. During the nineteenth century, the major nations of the world switched to the gold standard, thereby replacing the previous system of bimetallism (a standard based on the values of both gold and silver). In 1821, Britain was the first nation to adopt the gold standard.
In many U.S homes, as is the custom in most western cultures, the first beverage consumed at the start of every day is coffee. From its origins in Ethiopia, the strong black liquid has evolved from its modest beginnings to become an art form, a gourmet luxury, and the addiction of millions. The documentary Black Gold directed by Nic and Marc Francis addresses issues that rarely cross the minds of its consumers: who produces the coffee, and how does the coffee we drink directly affect the livelihood of those farmers who grow it? The documentary highlights the poverty that plagues Ethiopian coffee farmers by contrasting the impoverished African cities with the wealth of the western countries that control the market in order to gain the highest profit from their commodity. This essay will seek to analyze the racial and economic implications of the documentary using the theoretical works of sociologist and civil rights activist W.E.B Du Bois, with specific concentration on his concepts of The Color Line, The Veil, Double Consciousness, and False Consciousness. The concluding portion of the essay will include a critique on Du Bois’s work from a feminist perspective with respects to his inadequacy in including women as a part of his notion of The Talented Tenth, and how his views on African-American women do not fit the cultural context of the women in Africa.
x. With or without diamond-studding, gold jewellery is a market where India has tremendous scope for export growth. India is the world’s biggest consumer of gold according to World Gold Council Statistics. However, India’s exports of gold jewellery (13 per cent of its total gem and jewellery exports) are negligible: less than 2 per cent of the US$ 80 bn global market.
Though I will summarize most of the unethical issues with gold mining, many of the same unethical issues apply to most mining. Because it creates an enormous amount of toxic waste and is considered as one of the most environmentally destructive forms of mining, gold mining cause more than a few issues with the ecosystem. Gold mining is the leading cause of manmade global mercury pollution. Many gold mines dump their toxic waste directly in natural water bodies. When one considers that to mine gold for a 0.333 ounce ring equates to 20 tons of toxic waste, the amounts of toxic waste is massive. Companies that mine for gold and other metals dump at least 180 million tons of toxic waste in rivers, lakes, and oceans every year, 1.5 times the amount of waste U.S. cities send to landfills yearly. Another ethical issue in the mining industry is labor concerns. Labor practices in gold mines are far from responsible. Most gold miners work in dangerous conditions and earn so little money that they live in poverty. The most vulnerable gold miners are the youngest; an estimated 600,000 gold miners are children. Poverty is an issue that lies beneath gold mining labor practices. Gold mining can be a path to riches but for most miners it leads to a life of poverty. About 15million people in Africa, Asia, and Latin America are artisanal gold miners. Artisanal miners use simple
Narendra Modi calls for making india a cashless society in Mann Ki Baat by ET Bureau, 2016.
The idea of mercantilism was for nations to export more than they important and accumulate gold or silver, but mainly gold, to make up the difference (Mercantilism, n.d.). At the heart of mercantilism was that by maximizing net exports that would lead them to the best route to national wealth (C.W., 2013). This started “bullionism”, the idea that the only way a person could measure a country’s wealth and success was by the amount of gold that had (C.W., 2013). The best way to achieve “bullionism” was by making fewer imports and much exports. By doing that they make a net inflow of foreign exchange and maximizing the country’s gold stock (C.W., 2013).
First, in order to function properly, countries have to follow rules to avoid deflation or inflation. However, if a country wanted to, they could easily deflate or inflate their economy by breaking said rules. The second major flaw of the gold standard is that there is not enough gold in the world to serve as money anymore because there is too much money in circulation. The process of mining gold is dangerous, expensive and difficult as it is hard to find. The process of printing dollar bills is quick, easy and cheap. Why go through the effort to mine more gold when the fiat system has arguably done just as well? The choice is clear, the gold standard has been replaced by a new, better standard – the fiat
“India was a latecomer to economic reforms, embarking on the process in earnest only in 1991, in the wake of an exceptionally severe balance of payments crisis”(Ahluwalia 2002).The idea being simple ,there was a need to ...
To what extent will crypto-currencies affect the worlds economy? Introduction Firstly, an insight into crypto-currencies, what they are and how they can benefit the worlds economy. A crypto-currency is ‘digital medium of exchange’(RhettandLink) - managed through extensive encryption techniques known as cryptography. Comparable with fiat money, no group or individual can stunt, increase or abuse the production of crypto-currencies.
Today, couple of monetary forms are completely upheld by gold or silver. Subsequent to most world monetary standards are fiat cash, the cash supply could increment quickly for political reasons, bringing about inflation. The