Discounting the argument that gold is a hedge against inflation, the senior-most Deputy Governor wondered how a hedge instrument can offer as high as 37 per cent return year after year.
Gold prices on Thursday rose to all-time high of Rs 29,695 per 10 grams in the billion market here as investors shifted funds from melting equity markets to the precious metal, considered as a safe-haven investment.
The Reserve Bank, in Annual Monetary Policy Statement, has also asked banks to set up internal exposure limits for those non-banking financial companies who have gold loans portfolio of more than 50 per cent of the total financial assets.
Indians are no more rushing to buy bullion after this week's sharp sell-off
Gold is said to be the most-favored investment instrument in India.
The tariff value of silver has, however, been hiked marginally to $1062 a kg
Paper currency was first developed in China in the Tang Dynasty during the seventh century, and was later introduced in the Mongol Empire, Europe and America.
Last month saw DGCX record the highest volumes, as trades in futures contracts across the bourse crossed one million contracts.
The tariff value, which is released every fortnight, is the base price on which the customs duty is determined to prevent under-invoicing.
It can touch Rs 32,500 per 10 gram.
Rate in the global markets us normally sets price trend on the domestic front.
Earlier, the RBI had imposed similar restrictions on commercial banks and NBFCs.
Among the most valuable sources for gold mining production data, besides reports from mining companies themselves, are the Raw Materials Group in Solna, Sweden; Canada's Metals Economics Group in Halifax, Nova Scotia; and Intierra Resource Intelligence, based in Perth, Australia.
Gold coins are selling at a Rs 100 per 10 gram premium since Guru Pushya Nakshatra, one of the most auspicious occasions for buying precious metals in western Indian states.
The government on Friday slashed import tariff value of gold to $507 per 10 grams and of silver to $871 a kg following fall in global prices of the precious metals.
Gold prices on Friday tumbled by Rs 360 to Rs Rs 30,060 per 10 grams in the bullion market on Friday, while silver shed Rs 550 on sluggish demand amid weak global cues.
In the wake of rising global prices of precious metals, the government on Thursday hiked import tariff value of gold to $531 per 10 grams, while the value was kept unchanged at $899 per kg for silver imports.
Regardless of market levels, invest in stocks and equity mutual funds in a staggered manner.
Sharp rupee fall, interest differential on export finance rates may have led to arbitrage in gold.
Gold exchange-traded funds (ETFs) have further lost favour among Indian investors.
On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 25 each to Rs 27,300 and Rs 27,100 per 10 grams, respectively.
The poll-panel called these seizures by its various field and technical enforcement teams a "historic milestone" achieved "for the first time in any assembly electoral process", meaning during simultaneously-held assembly polls.
Gold prices have come down to Rs 27,790 per 10 grams in the national capital this month from the high of Rs 32,990 per 10 grams in April.
Gold production in India has dwindled in recent times.
After losing Rs 730 in last six sessions after the Reserve Bank of India eased imports curbs by scrapping 80:20 scheme, gold staged a strong comeback by rising Rs 840 to close at Rs 27,040 per ten grams, a level last seen on October 30.
Government measures and rising gold price decreased demand for the noble metal.
Gold prices fell due to persistent selling by stockists triggered by a heavy sell-off in global markets.
Gold prices zoomed across the country on Saturday to touch an all-time high of Rs 6730 per ten gram in Kolkata on revival of buying by stockists enthused by a firm trend overseas.
Gold in Singapore, which normally determines price trend on the domestic front, lost 0.90 per cent to $1,132.16 an ounce, the lowest since April 2010 and silver dropped by 2.3 per cent to $15.06 an ounce, the lowest since February 2010.
Bullion traders said a weakening trend in global markets, as the dollar's strength eroded demand, mainly put pressure on the precious metal.
Poor demand at existing higher levels further dampened the trading sentiment, traders said.
Tell us about your first experience buying/investing in gold.
International Monetary Fund has completed the sale of 403.3 tonnes of gold, as part of its two-year efforts to bolster the lender's finances that also saw India's central bank purchasing 200 tonnes of the precious metal last year.
Is there any one avenue, where your hard earned money will not only be safe, but also give you the maximum return?
Is it a good idea to give Rs 1 crore to someone who promises you a return of 24% per annum, wonders financial advisor P V Subramanyam.
Silver followed suit and traded higher by Rs 200 at Rs 34,200/kg.
Gold will first slide to $1,310-1,325 early next year on profit booking. But, the precious metal will get good buying support from central banks in Asia and West Asia regions, who are looking for opportunities to increase their gold portfolio.
