Gold buying for investment purposes also makes it easier to reduce imports of actual bullion

In prosperity, as in the hour of need, the thoughts of most Indians turn to gold. And with the steady drain on our foreign exchange reserves for over two years now, we have reached a stage as a nation when the question is being asked whether we could utilize the idle gold hoards of the people to see us through the critical years ahead. No less a person than the Prime Minister voiced this feeling at a recent meeting.”