Can Temple Gold Help the Rupee?

[livingdead]

pakistani banks have profit schemes yaar they pay deposit one million for three years profit 500000 but its not look good . i am not sure abut gold what they give .

the gold deposit is not lucrative.. max 1 % ... was not talking about fixed deposit schemes (where you need to deposit money not gold and get 10% return)
what is the fixed deposit rate in pakistan?

 

[Imran Khan]

the gold deposit is not lucrative.. max 1 % ... was not talking about fixed deposit schemes (where you need to deposit money not gold and get 10% return)
what is the fixed deposit rate in pakistan?

some banks give 10% some 12 some 13% and 14 even but it depends on terms and time you fixed dear as long time you fixed that much high profit rate .i deposit in habib bank at 13%

 

[indopak]

After getting in trouble because of their fiscal indiscipline and monumental loot of state money, Now they will loot our temples very well, Welcome to the sickular banana republic of India. Bet no sickular will hv guts to say anything about Wakf properties....

 

[thesolar65]

temple full of gold interesting

so religion has become a way of doing business

Tell me which religion does not mean business. It began with the start up with all religion. If business is not associated with any religion, that religion is dead.BTW the biggest industry in the whole world is Religion. No other industry gives so much employment like religion. Apart from extremist activities in all religion, people from all faith are making quick bucks, thanks to religion. Many cottage industry thrives like making small idols, symbols, printing of books, selling different types of goods used in prayer..etc. Even atheist country like China prepares and idols, symbols and other small things for people of all religion and makes money. I think the money made by religion all over the world would surpass even the biggest business house by many times.

 

[livingdead]

some banks give 10% some 12 some 13% and 14 even but it depends on terms and time you fixed dear as long time you fixed that much high profit rate .i deposit in habib bank at 13%

yeah.. same in India.. in UK max 3 to 4 percent for such deposit.. what about KSA?

 

[Indo-guy]

Taking back discussion to main topic ....




India indeed has huge tons of Gold ... with RBI as well as with Private entities ....

But whether this gold should be used to defend rupee ....I am not sure if it is correct thing ...

as far as RBI policy goes ...it is not willing to go at this length just to defend rupee ...More damage to economy will be accrued in process to defend the rupee....
Best policy will be let Rupee bottom out with minimal measures ...and rather focus on maintaining inflation and growth rate !

Rupee depreciation is symptom and not disease ....

and when you need to treat sick person ...if you treat disease well ...symptoms will resolve ...although symptomatic treatment matters too !

But to treat symptoms alone without treating disease is simply fatalistic !!!

 

[livingdead]

Taking back discussion to main topic ....

India indeed has huge tons of Gold ... with RBI as well as with Private entities ....

But whether this gold can be used to defend rupee ....I am not sure if it is correct thing ...

as far as RBI policy goes ...it is not willing to go at this length just to defend rupee ...More damage to economy will be accrued in process to defend the rupee....
Best policy will be let Rupee bottom out with minimal measures ...and rather focus on maintaining inflation and growth rate !

Rupee depreciation is symptom and not disease ....

and when you need to treat sick person ...if you treat disease well ...symptoms will resolve ...although symptomatic treatment matters too !

But to treat symptoms alone without treating disease is simply fatalistic !!!

why is rupee sliding.. can you explain in easy way...

 

[Imran Khan]

yeah.. same in India.. in UK max 3 to 4 percent for such deposit.. what about KSA?

KSA no profits deposit or fixed . keep your money 500 years in bank and take it back same .its not allowed in islamic law as per their law. but their currency stand same rates decades dear .

 

[Indo-guy]

why is rupee sliding.. can you explain in easy way...

Rupee is sliding ....because investors are taking out dollars ....It has lot to do with improvement in US economy ...( As investor you will like to put your money in country which promises to give better returns and one which will guarantee safety of your investment ) . For last 1 decade when western economies were not doing well and Goldman Sachs brought this BRIC concept....lot of investors put their money in BRIC like emerging economies ...

Exceptional turnaround of US & EU economy coupled with burst of BRIC bubble has led to waning investor confidence in emerging economies ...and hence currency of most emerging economies are depreciating ....

Malaysia , Indonesia , South Africa , Brazil, Turkey etc countries have witnessed > 10 % depreciation ....

All due to investor lead frenzy to shift investments back to US !!!


Well this is external factor ( largely uncontrollable ) .

Emerging economy like China is not facing same situation because of strong background !

We have simply mismanaged our economy ....we are spending more than we can earn ....

Our CAD has been high for last 36 months ....For > 2 years very high negative CAD . i.e -5 % GDP ....look at Singapore their CAD is + 20% GDP ....

that will give you clue how badly we mismanaged our economy ....


High CAD is just one factor ( the most important although ) ....Hope this will explain you why rupee is falling ... !!!

 

[livingdead]

KSA no deposit or fixed . keep your money 500 years in bank and take it back same .its not allowed in islamic law as per their law. but their currency stand same rates decades dear .

well .. . if banks dont charge interest for loans then depositors should be charged for keeping their money... how will bank operate otherwise .. somebody got to pay.

 

[Indo-guy]

@ hinduguy Hope you understand why rupee is falling ?

and since Investors are pulling out dollars because they have lost confidence in our economy ...simply propping up Ruppe by selling gold or our dollar reserves will amount to treat symptom superficially ....without treating disease ( which is to reduce CAD , by increasing exports and reducing non -essential imports and by improving status of economy to boost investor confidence ) !!!


This is the best I can do based on my understanding .... !

 

[Imran Khan]

well .. . if banks dont charge interest for loans then depositors should be charged for keeping their money... how will bank operate otherwise .. somebody got to pay.

yes they cut from services provide like an ATM card cost 100sr and cut like every ATM transactions out of bank ATM and cut if you have very low balance ETC .

 

[livingdead]

yes they cut from services provide like an ATM card cost 100sr and cut like every ATM transactions out of bank ATM and cut if you have very low balance ETC .

how easy is to get loan there? People will gamble with money if money is cheap.

 

[Skallagrim]

Well you do get some interest on your deposit ...it may not be very great ...but something ! besides you contribute to national economy by putting your " do-nothing " investment in bank ....!

The only thing uncomfortable about this scheme is you've to trust the RBI mint as they assess the purity of your gold in your absence and you have to agree with whatever they tell you about it.

 

[Indo-guy]

The only uncomfortable thing about this scheme is you've to trust the RBI mint as they assess the purity of your gold in your absence and you have to agree with what they say.

RBI is one of the few trustworthy institutions in India !