Can Temple Gold Help the Rupee?

[[Bregs]]

Kerala temples valuation of gold treasure has been stopped by supreme court order, just 2 chest were valued at billions of dollars and the temple still has many chests to be valued

 

[Imran Khan]

Bhai i mean the gold that is with Reserve bank of india

they should sale it to defend ruppe ? they buy it last year at high time i remember it now .

 

[[Bregs]]

they should sale it to defend ruppe ? they buy it last year at high time i remember it now .

Yes they can sell 10-20% of reserve 11 th highest in world held by there respective central banks to stabilise Rupee

 

[Indo-guy]

1.2 trillion dollar is exaggeration... nobody has properly audited either temple... its all speculation.

For security purpose the audit of subsequent cellars was closed ...

Even if it is speculation ...it is likely less than market price for the antiquity of assets ...

The real price is likely to be much higher ....
Nevertheless it is the richest temple not only in India but whole world ....

 

[livingdead]

lolz.. I remember a channel 4 show in which Krishnan Gurumurthy was suggesting one by one what to sell to save britain ...
and all of them were offensive ..

 

[thesolar65]

At a time when nothing seems to be able to stem the Indian rupee’s decline, a novel idea to boost the currency is doing the rounds: use the tons of gold stashed away in people’s homes and in temples.

The rupee sank to an all-time low of 65.56 for one U.S. dollar on Thursday (before recovering slightly Friday,) partly on fears that India will find it tough to finance its wide current-account deficit; the gap reflects the fact that India imports more than its exports.

To lower the deficit, the Indian government has announced several steps in recent weeks to reduce its imports, such as raising the import duties on gold.

But market experts aren’t so sure that high prices will deter India’s gold buyers, so some people have come up with an alternate solution: recycle the gold already in India.

India currently holds around 20,000 tons of gold, according to the World Gold Council. At current prices, that would be worth $950 billion.

A small piece of this gold – around 558 tons or 2.79% – is held by the Reserve Bank of India, making it the 11th largest official owner of gold in the world, according to data from the World Gold Council and International Monetary Fund.

The rest is held by households and individuals, in their homes or bank vaults, and by Indian temples, which have historically received gold bars, coins and even jewelry as donations from patrons.

There is no firm estimate of how much gold is held by Indian temples, but it is believed to be several thousand tons. In Sri Padmanabhaswamy temple in Kerala, where a large and intact hoard of temple treasure was discovered in 2011, there is estimated to be gold and jewelry valued at one trillion rupees (US$16billion.)

Jamal Mecklai, founder of Mumbai-based currency consulting firm Mecklai Financial, suggested that the Indian government should make use of some of this temple gold.

In a commentary published last week, Mr. Mecklai said the government should ask the Tirupati Trust Foundation, linked to the eponymous south Indian temple, to deposit its gold stock with India’s state-run banks.

Mr. Mecklai said the banks could pay the Tirupati Trust an interest for its gold, and then sell a large portion of the stock in the domestic market – thus ultimately, reducing the need to import. Mr. Mecklai estimated that the Tirupati Trust holds about 1,700 tons of gold, which would be worth around $81 billion.

On similar lines, an association of jewelers is suggesting that the government encourage individuals to deposit their gold jewelry with banks.

“If we will be able to bring out only 10% of the gold holdings, we don’t need to import any gold for the next two years,” Haresh Soni, chairman of the Mumbai-based All India Gems & Jewellery Trade Federation told India Real Time. Mr. Soni said he has submitted a plan to this effect to the government and some banks.

Indian banks already offer a so-called gold deposit scheme, in which they accept gold bars and jewelry from individuals and pay interest on it. But at the moment, banks require a minimum deposit of 500 grams of gold. Experts say this is too much to ask, since many individuals may want to deposit smaller quantities, say 100 to 200 grams.

Mr. Soni suggests that banks lower their minimum deposit required.

In another suggestion, London Bullion Market Association Chairman David Gornall told The Hindu Business Line newspaper that the Reserve Bank of India could swap the 200 tons of gold that it had bought from the International Monetary fund in 2009, for dollars. This will boost dollar inflows at a time, when foreign investors are taking out the greenback from the country.

Can Temple Gold Help the Rupee? - India Real Time - WSJ

No. The politicians are hell bent on committing Suicide. Even you give them all the wealth on earth, they will give it to poor, needy and lazy people. There is a saying in our language "Basi Khaile Nai bali sare" means "if you sit idle and eat, the sand of river will also get finished".

 

[Indo-guy]

they should sale it to defend ruppe ? they buy it last year at high time i remember it now .

That's why RBI does not look much worried ...it has lot of tricks up its sleeves .

Current thinking is not to defend rupee ...but let it bottom out . RBI has more important things to do besides defending rupee.

This depreciation was long overdue ....but in market frenzy has overshot ....Rupee depreciation will continue for some time ...expected to hit as low as 75 or even more !

RBI is keeping watch ...they know well what to do ...I think they will take calculated steps based on how things will move ....

Most important objective for RBI is to control inflation and keep up growth momentum in face of ongoing rupee depreciation ....

 

[Skallagrim]

Can anyone tell me how depositing jewellery with the bank can possibly deter jewellers from importing gold? Gold bars can be sold and then returned to the depositor but you can't sell jewellery and then later return the same to depositors.

 

[Indo-guy]

Can anyone tell me how depositing jewellery with the bank can possibly deter jewellers from importing gold? Gold bars can be sold and then returned to the depositor but you can't sell jewellery and then later return the same to depositors.

Good question ...I hope if somebody can answer it . I think it largely pertains to gold bars, biscuits , coins only which can be used and returned ! Regarding jewellery deposits : I am not sure if it plays any additional role besides bringing gold security deposit in main-stream bank financial transactions !

 

[Indo-guy]

No. The politicians are hell bent on committing Suicide. Even you give them all the wealth on earth, they will give it to poor, needy and lazy people. There is a saying in our language "Basi Khaile Nai bali sare" means "if you sit idle and eat, the sand of river will also get finished".

Current economical crisis is multifactorial ....lot of external ( uncontrollable ) factors with lot of internal ( self created , avoidable ) factors ...

Blaming everything on politicians is extreme opinion ....

Remember truth often lies in between two extreme opinions ....

It will be too simplistic to blame all on politicians or governments ! Similarly RBI gold or temple gold will not solve current problem ! Because current problem is multifactorial and solution also has to be as such multifaceted, multi-targeted....
This problem is long standing one ....and it will take long time to resolve too !!!

Your saying is apt although !

 

[DarkPrince]

temple full of gold interesting

so religion has become a way of doing business

 

[Imran Khan]

َso we should buy and keep gold bars ?

 

[livingdead]

َso we should buy and keep gold bars ?

not buy new.. deposit with bank if you already have..

 

[Imran Khan]

not buy new.. deposit with bank if you already have..

why i give it to bank ? its mine i keep it in home and these are bars not jewelry

 

[livingdead]

why i give it to bank ? its mine i keep it in home and these are bars not jewelry

because keeping at home does not give you anything.. gold bars just lying idle.. your wife cant wear it... if you are keeping just for rainy day then why not keep with bank.. it will be safe.
and you earn money

http://www.planmoneytax.com/sbi-gold-deposit-scheme/

@Skallagrim .. above link answers your question.. you wont get your jewellry back intact.