Chennai:
With the decline in interest rates and increase in gold
prices, global investors now seem to prefer gold instead
of the US dollar for hedging, India is sitting on a huge
gold mine.
Speaking
at The India Finance Forum (TIFF) on the trends in economy,
currency and oil prices, S Naganath, chief investment
officer, DSP Merrill Lynch Managers Limited said, "Indians
have been a buyer of gold for decades. With gold prices
going up, it is time to monetise the metal. It is estimated
the value of household gold in India is around $250 billion."
He
also raised doubts about the sustainability of the US
dollar as the global reserve currency. "I will not
rule out gold a standard coming back."
Referring
to China he said, "Chinese manufacturers will put
pressure on other manufacturers, which augurs well for
consumers." But China will face problems when the
commodity supplies increases and newer technology advancements
happen.
On
oil he remarked, Russia will see more investments in oil
exploration. "Russia is one of the largest oil suppliers
and the Siberian region is under-tapped."
Wondering
whether Japan, with its ageing population, could become
the financier for Asian economies Naganath said, "India
should engage with Japan and Russia for fund and oil."
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