Indians pawning gold lifts lenders shares in real economy

INDIA WATCH

BNN Bloomberg/Ishika Mookerjee and Nupur Acharya

photo of pile of Swiss 20 franc gold coins
“With a transaction time of less than an hour and collateral that can be quickly sold off in the event of default, India’s market for such lending is set to expand by at least one-third to 4.6 trillion rupees ($61 billion) in two years to March 2022, according to an estimate by KPMG. Lenders themselves usually face little difficulties in rolling over funds used for lending against gold as more than half of these loans get repaid in less than six months.”

USAGOLD note:  A kind of back door argument why gold is such a utilitarian and reliable asset upon which its owners can rely when the chips are down ……


Repost from 7-17-2020

This entry was posted in Today's top gold news and opinion. Bookmark the permalink.