The Golden Edge: Gold's Rising Significance in Global Portfolios

Chief Economic Advisor V Anantha Nageswaran emphasizes the enduring significance of gold as a diversification tool, store of value, and cultural symbol. Despite market fluctuations, gold's relevance persists. India's past efforts and challenges in gold monetization were also highlighted as crucial policy considerations.

Chief Economic Advisor V Anantha Nageswaran reaffirmed gold's enduring significance as a vital portfolio diversification tool, cultural emblem, and store of value. Speaking at the IGPC-IIMA conference, he stressed gold's potential increasing importance amid changing global financial structures.

Over the past three months, gold's price has surged by over USD 200 per ounce, contrasting with an 8% decline in Indian stock markets. Nageswaran pointed to India's need to harness gold productively without diminishing its cultural value, considering its role in economic policy challenges.

The Gold Monetisation Scheme 2015 aimed to reduce gold imports by encouraging bank deposits of gold for interest. Despite this, global debt concerns and inflation fears underline gold's critical role. India's GDP growth is forecasted at 6.5% for FY25.

(With inputs from agencies.)