The bad news coming out of Europe has been pumping up the price of gold, leading to an uncommonly dull Akshaya Tritiya, one of the most auspicious days on which to buy bullion. Not that Indians need an excuse for that particular activity.
But with the yellow metal surging to a high, some of the traditional enthusiasm has been missing. Bloomberg predicted a halving ofdemand from last year to 20 tonnes during this year’s Akshaya Tritiya, which fell on Sunday.
Coming so soon after the financial crunch of a few years ago, fears of the euro zone debt crisis spinning out of control are very real. If that wasn’t enough, there’s three-digit oil looming on the horizon, according to the chairman of India’s largest company.
Two years ago, governments and central banks came to the rescue. But if governments themselves go down the tube, who’s there to pull off the life-saving act? All those people who’re buying gold now perhaps.