Gold Is Old: Noble Metal in the Indian Economy Through Ages

Abstract

Indians have had a fascination for possessing gold since ancient times. I document the sacredness of gold, ancient references to jewellery, gold extraction and minting technology, its function as money and store of value, and specie inflow due to trade surplus with the Occident up until the medieval era. India’s gargantuan stock of about 28,000 tonnes of gold is hoarding and not savings. Today, gold demand is causing leakage from the circular flow of gross domestic product and trade deficit. Policy suggestions are made that will re-channel idle excess stock of gold into financial markets, reduce the trade deficit and contribute to gross domestic product growth.