Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Worswick who wrote (2304)	2/21/1998 10:55:00 PM
From: k.ramesh	Read Replies (2) \| Respond to of 9980

I have thought about this as well, why are Indians buying gold when everyone is selling it?, The answer, the non convertible weak currency stupid. If India ever has a completely convertible currency then Indians will ditch gold for interest earning paper just like everyone else. In the space of the the last 20 years the rupee has depreciate d from 11 to the $ to almost 40$, In such a scenario, if holding $ is illegal and holding gold can be explained away as family wealth, what would you do? Diamonds are a bit tricky, India needs the DeBeers and DeBeers needs India as India has the largest diamond cutting industry providing jobs and foreign exchange. If they can negotiate a more equal playing field with the monopolists then more power to India. They could also try to directly supply the local rough diamonds to the local cutting industry, but this may not work as a single mine probably cannot provide all the roughs India needs, besides DeBeers controls everything from the mine to the finished product to the image of the diamond.